FX.co ★ Technical analysis of USD/CAD for July 4, 2014

General overview for 04/07/2014 08:50 CET

The first corrective wave a green has hit the target level as anticipated yesterday and now this pair is continuing the corrective cycle. Wave (b) blue of this cycle might have been completed as well and if this point of view is correct, then the intraday resistance at the level of 1.0678 should be broken before any new low below the level of 1.0618 is made. The first target projection for wave (c) blue of the corrective cycle is at the level of 1.0750, the old wave (iv) green area. If price will move the, then the corrective cycle in simple (a)(b)(c) correction might be considered done.

Support/Resistance:

1.0614 - WS1 

1.0618 - Intraday Support

1.0685 - Weekly Pivot

1.0645 - Intraday Resistance

1.0678 - Intraday Resistance 

1.0711 - WR1 

1.0750 - Previous wave (iv) Zone

1.0782 - WR2

1.0809 - WR3

Trading recommendations:

Trading this corrective cycle might be rather difficult at this stage of the wave development so traders are advised to stay aside and wait for the corrective cycle to completed or give more clear picture.