FX.co ★ Technical analysis of USD/CAD for August 21, 2014

General overview for 21/08/2014 09:20 CET

The five wave impulsive development looks completed at the current levels and it has been labeled as red wave 5. The next cycle should be a corrective downside cycle. Please, remember that the wave -v- might get extended a little bit more if the level of 1.0930 is not broken first. The alternative labeling indicates an even more extended upward wave progression as long as the level of 1.0858 is not clearly violated. Please, notice that the bearish divergence on the momentum oscillator supports the bearish case, but any breakout higher above the level of 1.0985 is bullish and next resistance is at the level of 1.1020.

Support/Resistance:

1.0985 - Swing High | Intraday Resistance|

1.0960 - Intraday Support

1.0945 - WR1

1.0930 - 1.0935 - Supply Breakthrough Zone

1.0901 - Weekly Pivot

Trading recommendations:

The buy orders from the beginning of the week should be closed now as the target level has been hit. Only a clear breakout above the recent swing high should be bought with target at the level of 1.1020.