FX.co ★ Technical analysis of USD/CAD for June 20, 2014

General Overview for 20/06/2014 08:44 CET

The pair is at the critical support level now and any breakout lower is very bearish. The price is now in the last stages of wave five (alt:5 red) and some corrective upward cycle might be expected but for this scenario to happen, the intraday resistance at the level of 1.0836 must be broken. Otherwise lower levels will be seen in this pair as the current consolidation looks like a wave 4 triangle of the last wave 5 red to the downside. Please notice that the main count still suggests one more internal cycyle to complete to the upside before the final push to the downside would happen.

Support/Resistance:

1.0806 - WS1

1.0809 - Intraday Support

1.0835 - Intraday Resistance

1.0872 - Weekly Pivot

Trading recommendations:

Daytraders should consider to open the buy positions only if the level of 1.0836 is broken and H1 candle closes above it. SL for that trade would be below the level of 1.0805 and TP at the level of 1.0872.