FX.co ★ Technical analysis of USD/CAD for March 10, 2014

General overview for 10/03/2014 12:30 CET

The five wave impulsive wave progression to the upside looks finished and the question is whether this corrective cycle in wave 2 green has been finished in a shape of the ABC Running Flat formation or the corrective cycle will get more complex and time consuming. Currently, the pair is trading inside the red corrective channel and a breakout to the downside is expected. Please notice that to confirm more downside, the breakout must be impulsive in nature and golden trend line must be broken. So, any price below intraday support at the level of 1.1099 is the first confirmation of a possible wave alt.2 green top. Breaking lower, below wave 4 low at the level of 1.1069 and weekly pivot at the level of 1.1062, it gives the bears more clues about further possible market direction.

Support/Resistance:

1.1171 - 1.1191 - Supply zone

1.1171 - WR1

1.1157 - Techncial resistance

1.1128 - Intraday resistance

1.1099 - Intraday support

1.1069 - Wave 4 low

1.1062 - Weekly pivot

1.1008 - WS1

Trading recommendations:

Sell stop orders should be opened from the level of 1.1095, with SL above the level of 1.1131 and TP at the level of 1.1062 with a possible downside extension.