FX.co ★ Technical analysis of USD/CAD for July 2, 2014

General overview for 02/07/2014 11:40 CET

The anticipated wave 5 red is unfolding in an impulsive pattern to the downside and from the current point of view the whole impulsive structure is very close to being completed. The price is moving inside the golden channel, targeting one of two weekly pivot levels as possible termination levels for wave 5 red. Please notice that any breakout higher above the intraday resistance above the level of 1.0644 will invalidate the impulsive wave development and will be the first confirmation that the bottom for wave 5 red is already in place.

Support/Resistance:

1.0614 - WS1

1.0685 - Weekly Pivot

1.0644 - Intraday Resistance |Key Level |

1.0711 - WR1

1.0750 - Previous wave (iv) Zone

1.0782 - WR2

1.0809 - WR3

Trading recommendations:

All swing traders that have open short positions should move SL or trail stop loss order one pip above the level of 1.0644 because the impulsive wave progression is very close to being completed and upward correction is anticipated.