FX.co ★ Technical analysis of USD/CAD for June 27, 2014

General overview for 27/06/2014 08:10 CET

The market keeps making new lower lows and this is why I decided to take the second look at the four-hour time frame count to determine if the impulsive wave count is better than any other and if it can fit the overall picture. Currently, it looks like the wave progression is very impulsive and new lows should be expected as the impulsive cycle wich has not been finished yet. The target zone for wave (v) green is the area between the levels of 1.0644 - 1.0661 and some rebound in wave 4 red should be expected there. The key level for bulls to take control is the level of 1.0751 (breakout).

Support/Resistance:

1.0644 - 1.0661 - Wave (v) Target Zone

1.0716 - Technical Resistance

1.0751 - Wave (iv) High

1.0813 - Technical Resistance

Trading recommendations:

The swing traders should still keep the open sell positions running and the good level to add to the existing positions is the area between the levels of 1.0716 - 1.0751, with SL above the level of 1.0813 and TP below the level of 1.0644.