FX.co ★ Technical analysis of USD/CAD for January 23, 2014

General overview for 23/01/2014 14:50 CET

The target area indicated yesterday has been hit but the market extended the move up even higher and this was the reason to take a look at my longer term count for this pair. The outlook is not very much bullish anymore as the impulsive wave development on daily time frame looks almost finished and lower time frames seems to support this view.

Currently on H1 time frame the impulsive wave progression looks to be finished and more downside is expected. Breakout below the level of 1.1111 is bearish and might be a first clue that the top for wave 5 is in place.

Support/Resistance:

1.1188 - WR3

1.1171 - Intraday Resistance

1.1111 - Intraday Support

1.1089 - WR2

1.1037 - WR1

1.1017 - Technical Support

Trading recommendations:

Breakout below the level of 1.1111 is a signal for range violation and short positions should be open with SL above the level of 1.1112 and TP at the level of 1.1089 and 1.1037.