FX.co ★ Technical analysis of USD/CAD for January 14, 2015

General overview for 14/01/2015 06:25 CET

The wave progression is developing just as anticipated with the latest three wave corrective cycle in wave -iv- blue being fully expected. Currently the correction looks completed and another impulsive wave to the upside is due. Please notice that the target for wave 5 purple might reach the even level of 1.2000, but the next weekly resistance level is at the level of 1.2200. Moreover, please notice there is a bearish divergence building on momentum oscillator as well - the deeper corrective cycle is imminent.

Support/Resistance:

1.2200 - WR3

1.2000 - Round Level|Psychological Resistance|

1.1993 - Intraday Resistance

1.1987 - WR2 

1.1926 - WR1 

1.1923 - Intraday Support 

1.1895 - 1.1912 - Target Zone 

1.1829 - Weekly Pivot 

Trading recommendations: 

The daytraders should keep an eye on 1.2000 round number, but there is still no confirmation, that the deeper corrective cycle has begun.