FX.co ★ Technical analysis of USD/CAD for Febuary 14, 2014

General overview for 14/02/2014 08:35 CET

Five impulsive waves to the downside has been finished and now the market is in corrective cycle wave (iv) blue. The most important intraday level for bears is the area between the levels of 1.1026 - 1.1042. It will act as a strong resistance together with golden trend line. Pleas notice that the intraday resistance at the level of 1.0980 must be broken before any upside correction would take place. Downside momentum is diminishing and bullish divergence has been made on momentum oscillator.

Support/Resistance:

1.0946 - Intraday Support

1.0955 - WS1

1.0980 - Intraday Resistance

1.1026 - 1.1042 - Key Level For Bears

1.1042 - Weekly Pivot

Trading recommendations:

For intraday scalpers: if the level of 1.0980 is broken then buy orders for intraday scalp should be opened with SL below the level of 1.0946 and TP at the level of 1.0126.

For swing traders: keep the sell orders running as the downside wave progression has not been finished yet.