FX.co ★ Technical analysis of USD/CAD for July 31, 2014

General overview for 31/07/2014 08:30 CET

Last chance for bears to gain control over this market as the corrective cycle in purple wave 2 might be considered completed. Some reaction to the bearish divergence is needed and the level of 1.0878 should be watched closely by the bears as the breakout lower might lead to the test of the level of 1.0822. Nevertheless, the key invalidation line is at the level of 1.0960. If broken, the purple impulsive cycle is invalidated and higher prices will be seen.

Support/Resistance:

1.0960 - Key Level | Invalidation Level |

1.0814 - Intraday Resistance

1.0901 - WR2

1.0878 - Intraday Support

1.0869 - WR1

Trading recommendations:

Day traders should consider opening sell positions from the current price levels with SL above the level of 1.0915 and TP at the level of 1.0878 with a possible extension to 1.0822.