FX.co ★ USD/CAD H1 and H4 analysis for December 9, 2013

General overview for 09/12/2013 09:45 CET

The overall wave development looks rather bearish mainly due to higher cycle impulsive progression finished and now SUPPLY ZONE has capped any upside spikes.

From the EWP point of view the larger cycles are done, but no new impulsive price development to the downside has been iniciated, so a possible test of the SUPPLY ZONE is in view.

In H4 chart traders can see that afer wave 5 blue extension the price has tested previous wave iv zone and last high as well. The alternate count here would indicate this wave structure as a possible correction in wave 4 and the first impulsive wave to the downside.

As long as Supply Breakthrough Zone is not broken OR new high is made no confirmaion comes so far from price action analysis, so waiting for some decisive movent is advised.

Support/Resistance:

1.0744 - WR2

1.0733 - 1.0744 - Wave 5 Target Zone

1.0710 - Intraday High

1.0689 - WR1

1.0665 - Intraday Resistance

1.0650 - Weekly Pivot

1.0623 - Intraday Support

1.0601 - Techncial Support

1.0588 - WS1

1.0557 - WS2

Trading recommendations:

As long as Intrday Support Zone is not broken buing the dips should be in play with SL below 1.0623 and Potential TP1 at 1.0710 and TP2 at 1.0734