FX.co ★ Technical analysis of USD/CAD for Febuary 4, 2014

General overview for 04/02/2014 09:30 CET

Five impulsive waves from the level of 1.1222 has been done and currently the price is in the corrective cycle wave (ii) blue. The shape of the correction starts to look like a zigzag pattern, therefore one more wave to the upside is needed to complete the cycle. The target is at the level of 1.1150 and any breakout higher would be a first clue, that the corrective cycle might get more complex and time consuming. Only a breakout above the last swing high invalidate the count.

Support/Resistance:

1.1222 - Swing High

1.1213 - WR1

1.1131 - 1.1149 - Key Level

1.1121 - Weekly Pivot

1.1117 - Intraday Resistance

1.1060 - Intraday Support

1.1020 - WS1

Trading recommendations:

Short positions should be opened in the grey rectangle zone between 1.1131 - 1.1149 with SL above the level of 1.1151 and TP at the level of 1.1020.