FX.co ★ Technical analysis of USD/CAD for January 7,2014

General overview for 07/01/2014 11:10 CET

The corrective cycle indicated yesterday has been almost done as there is one more wave to the upside to be completed.

There are two possible target yones for this wave c green of wave (c) blue:

- first target zone is between 1.0683 - 1.0690

- second target zone is between 1.0711 - 1.0716

Any breakout higher above the SUPPLY ZONE invalidates the bearish impulsive count.

Support/Resistance:

1.0735 - Swing High

1.0711- 1.0716 - Target Zone #2

1.0683 - 1.0690 - Target Zone #1

1.0675 - Intraday Support

1.0644 - Weekly Pivot

1.0640 - Intraday Support

Trading recommendations:

Short side of the market should be in play from the levels indicated on the chart when the intraday upside trend is finished. The most rewarding entry should be from the zone of 1.0711 - 1.0716 with SL at 1.0741 and TP at 1.0644 and 1.0585.