FX.co ★ Technical analysis of USD/CAD for March 17, 2015

General overview for 17/03/2015 10:20 CET

The corrective wave to the downside does not look too much impulsive so far and the weekly pivot at the level of 1.2746 is being well supported. This might mean that the wave labeled as (b) green is likely to be just a beginning of another impulsive wave up and the current consolidation is a corrective sub-cycle of this impulsive wave. Please notice that the current count is valid only in case the wave progression is a part of an impulsive wave (5) to the upside. So, lack of impulsive market behavior might be the first clue that wave 4 green of a higher degree is in progress.

Support/Resistance:

1.2917 - WR1

1.2821 - Intraday Resistance

1.2746 - Weekly Pivot

1.2704 - Intraday Support

1.2668 - WS1

1.2596 - Technical Support

Trading recommendations:

The market is still consolidating and the trading advise is still valid. Daytraders should consider opening buy orders if:

- the level of 1.2821 is clearly violated with a minimum H1 close above this level. SL should be tight (10-20 pips), TP should be placed at the level of 1.2917.

- the level of 1.2704 provided a clear bounce to the upside, SL should be tight (10-20 pips), TP should be placed at the level of 1.2917.

- the level of 1.2596 provided a clear bounce to the upside, SL should be tight (10-20 pips), TP should be placed at the level of 1.2917.