FX.co ★ USD/CAD H1 Analysis for November 13, 2013

General overview for 13/11/2013 09:00 CET

Two scenarios are present here and the difference is in wave (v) blue location: the top is either in place or the price is still in corrective cycle:

SCENARIO 1: MAIN COUNT - Price is in corrective cycle and as long as 1.0460 is not broken the count is valid. New top is possible in TARGET ZONE. The indicated corrective pattern on chart is a possible abcde green triangle.

SCEANRIO 2: ALTERNATE COUNT - Price might have topped at 1.0506 with Ending Diagonal pattern wave v blue and now the downside cycle started. The confirmation level is at 1.0460.

Please notice the Bearish Divergence on AO oscillator, that indicates lack of momentum to the upside is building.

Support/Resistance:

1.0525 - TARGET ZONE

1.0506 - Intraday High

1.0474 - Intraday Support

1.0466 - Weekly Pivot

1.0460 - Invalidation Line | Key Level |

1,0443 - Technical Support

1.0426 - WS1

Trading recommendations:

The Key Level should be in play here:

- if holds, long side of the market should be in play with SL below it and TP at 1.0500

- if broken, short side of the market should be in play with SL above it and TP at 1.0443