FX.co ★ Technical analysis of USD/CAD for May 8, 2014

General overview for 08/05/2014 09:55 CET

The correction in wave iv is getting more complex as the triangle pattern develops. One more wave to the upside inside the triangle is expected and then final wave down should happen. The target levels are still the same: the first target for this wave is at the level of 1.0857, but downside extension is possible. Then the market should bounce and start an upward corrective cycle.

Support/Resistance:

1.0857 - Target for wave v

1.0873 - Intraday Support

1.0878 - WS2

1.0906 - Intraday Resistance

1.0932 - WS1

Trading recommendations:

All sell orders that had been advised to open from higher levels should be covered at the level of 1.0857. Corrective cycle is ahead.