FX.co ★ USD/CAD H1 analysis for December 6, 2013

General overview for 06/12/2013 09:45 CET

The grey rectangle area of Supply Breakthrough Zone has been broken on news relase yesterday. Then pair tried to get above this zone again but the old Ending Diagonal trendline has been acting as a resistance and market turned south.

From EWP point of view there is a nice i-ii, (1)-(2) sequence that indicates more impulsive selling to come later on. Break out of the golden channel is first important top confirmation. Close below Weekly Pivot is bearish.

Support/Resistance:

1.0705 - Swing High

1.0703 - WR2

1.0698 - Wave (2) Top

1.0671 - WR1

1.0663 - Intraday Resistance

1.0623 - Intrday Support

1.0600 - Technical Support

1.0594 - Weekly Pivot

Trading recommendations:

As long as grey rectangle zone is not broken the short side of the market should be in play with SL above 1.0672 and potential targets TP@ 1.0623.