FX.co ★ Technical analysis of USD/CAD for March 9, 2015

General overview for 09/03/2015 10:00 CET

As we anticipated last week, the corrective cycle in wave 4 looks like it is completed and the market is trying to develop the first impulsive wave to the upside. According to the Elliott wave rules, there are two important levels to keep an eye on: small internal impulsive cycle invalidation line at the level of 1.2517 and larger impulsive cycle invalidation line at the level of 1.2386. Any breakout below the last line invalidates the impulsive wave progression. The target for wave v blue is the supply zone between the levels of 1.2658 - 1.2692.

Support/Resistance:

1.2658 - 1.2692 - Supply Zone

1.2626 - Intraday Resistance

1.2564 - Intraday Support

1.2517 - Invalidation Level

1.2506 - Weekly Pivot

1.2493 - WS1

Trading recommendations:

All buy orders advised last week should now be well in profit and the SL might be now placed below the level of 1.2517. TP orders should be placed at the level of 1.2658.