FX.co ★ Technical analysis of USD/CAD for April 7, 2014

General overview for 07/04/2014 10:10 CET

The downside momentum is loosing its strength a bit and this is why I have decided to keep the alternate count on the chart as there is still a possibility of an expanding flat correction in wave 2 green before the downtrend resumes. The key intraday level to watch is the intraday resistance zone between the levels of 1.1000 - 1.1011. Any breakout higher would mean the golden trendline will be tested and the target after a sustained breakout of this line would be the level of 1.1066. On the other hand, any failure at the key level would mean that more downside wave development is in progress.

Support/Resistance:

1.1148 - WR3

1.1108 - WR2

1.1066 - 1.1076 - Technical Resistance

1.1031 - WR1

1.1000 - 1.1011 - Key Level

1.0995 - Weekly Pivot

1.0956 - Swing Low

1.0921 - WS1

Trading recommendations:

The swing traders should keep the short positions open and wait if the level of 1.1066 will be tested.

The daytraders should watch the key level here for a possible short opportunity and open sell orders at the level of 1.1000 with SL above the level of 1.1017 and TP at the level of 1.0921.