FX.co ★ Technical analysis of USD/CAD for August 6, 2014

General overview for 06/08/2014 09:30 CET

The main secnario has been invalidated overnight due to wave 1 and wave 2 overlapse. In that case, the alternate impulsive scenario is in play with a very bullish outlook for this pair on almost every time frame. Nevertheless, due to the multiple bearish divergence, the corrective cycle on intraday time frames is about to start. This cycle has been labeled as red wave 4 and the maximum range of the corrective cycle is down to the level of 1.0870 where the demand zone is. When the correction is completed, new highs are expected.

Support/Resistance:
1.0991 - WR1
1.0977 - Intraday Resistance
1.0943 - Intraday Support
1.0892 - Weekly Pivot
1.0875 - Previous Wave Four Level

Trading recommendations:
Both swing and day traders should now set their mind to "buy the dips" mode and the critical zone for buying is at the level of 1.0870.