FX.co ★ Technical analysis of USD/CAD for April 2, 2014

General overview for 02/04/2014 14:00 CET

The correction looks like finished sooner than expected and price has already started developing wave 3 green to the downside. The current labeling is correct only if we assume that the wave 2 or B green correction was a simple abc regular flat structure. Please notice that the correction might get more complex and time consuming but now the wave progression is clearly impulsive to the downside and no divergence between price and momentum oscillator is present.

Support/Resistance:

1.1090 - Weekly Pivot

1.1075 - Intraday Resistance

1.1000 - Intraday Support

1.0936 - WS1

Trading recommendations:

Sell stop orders should be opened from the level of 1.0999 with SL above the level of 1.1040 and TP at the level of 1.0936 with a possible downside extension.