FX.co ★ Technical analysis of USD/CAD for May 22, 2014

General overview for 22/05/2014 08:25 CET

The supply zone has been violated and the previous impulsive bearish count has been invalidated, so after taking a look at the higher time frames I have come up with another idea for this corrective wave development. The current wave upward is the last of the ABC green wave progression in either running flat or irregular flat corrective cycle in wave 2 black (H4 time frame chart). On an intraday chart, there is a key level to the upside at intraday resistance level at 1.0926. Only a breakout higher above the level would make higher prices possible. On the other hand, a breakout below the intraday support at the level of 1.0890 will be seen as bearish and might lead to another golden trendline test.

Support/Resistance:

1.0949 - WR2

1.0940 - Swing High

1.0927 - Intraday Resistance

1.0897 - WR1

1.0890 - Intraday Support

1.0874 - Weekly Pivot

Trading recommendations:

Daytraders should consider opening buy positions only if the level of intraday resistance is broken with target at the level of 1.0950.