FX.co ★ Technical analysis of USD/CAD for May 23, 2014

General overview for 23/05/2014 08:00 CET

The downside corrective wave progression is developing as anticipated and has hit the target levels. Currently there is an unfinished internal corrective cycle to the upside that must be completed before the last leg to the downside will appear. The alternate count however indicates that the laciest low at the level of 1.0883 might be the bottom for wave alt:(b), and now a breakout above the intraday resistance at the level of 1.0930 will confirm the scenario of a further strength in this pair. In case there is no such a breakout, traders should expect that the lower golden trendline will be tested again.

Support/Resistance:

1.0948 - WR2

1.0940 - Swing High

1.0930 - Intraday Resistance

1.0897 - WR1

1.0883 - Intraday Support

1.0874 - Weekly Pivot

1.0851 - Technical Support

Trading recommendations:

Trading in the middle of the corrective wave b is the most difficult to make profits so I would advise to wait for more clear pattern to appear.