FX.co ★ USD/CAD M30 analysys for 05/08/2013

General overview for 05/08/2013 08:00 CET:

The top I had mentioned in my last analysis held almost perfectly (4 pips overthrow of 78% Fibo level), so congratulations to everyone who took the trade there.
Currently, after the five wave advance, the price has made a sharp correction that I have labeled as wave (ii) OR (a) and the later price action suggests that impulsive wave development might be continued to the upside. Nevertheless, bearish divergence on AO oscillator might indicate the leg (ii) OR (a) was just the first part of the larger correction and more downside is to come: the scenario will be confirmed if price will break out below Weekly Pivot level and invalidation line at 1.0353.

Otherwise, outlook is bullish.

Support/Resistance:

1.0400 - Swing High

1.0396 - 78%Fibo

1.0381 - 1.0383 - Intraday Support

1.0355 - Weekly Pivot

1.0353 - Invalidation Line

1.0335 - Intraday Support

1.0307 - WS1

1.0244 - Swing Low

Trading recommendations:

For an intraday trade a short position with very tight SL above the Swing High at 1.0400 is preferred. First intraday support level at 1.0381 must be broken and golden trend line break would be supportive for the shorts as well. Target for that shot trade would be at Weekly Pivot at 1.3055 level, but please notice that You are trading against the higher time frame trend, so please be careful.