FX.co ★ Technical analysis of USD/CAD for March 7, 2014

General overview for 07/03/2014 08:30 CET

The market made a quite large overthrow in last wave (e) blue of the triangle and hit the 78%Fibo at the level of 1.0968. Currently, the small bounce is developing and any new low would invalidate the triangle wave B green idea. The key level to the upside now is old supply breakthrough zone between the levels of 1.1016 - 1.1026. To continue to the upside market, a breakout and close above this zone must happen and then go straight to the weekly pivot. Failure of breaking higher above this zone would result in possible test of intraday support at the level of 1.0980 and if this level is broken then intraday low at the level of 1.0953 will be tested as well.

Support/Resistance:

1.0953 - Intraday low

1.0967 - WS2

1.0969 - 78%Fibo

1.0980 - Intraday support

1.1011 - Intraday resistance

1.1016 - WS1

1.1016 - 1.1027 - Key Level

1.1087 - Weekly pivot

Trading recommendations:

As long as the key level will act as a resistance sell orders should be opened from the level as close to the 1.1016 as possible, with SL above the level of 1.1028 and TP at the level of 1.0953. In case of upside breakout above the key level, buy orders should be opened from the level of 1.1033 with SL below the level of 1.1016 and TP at the level of 1.1087.