FX.co ★ Technical analysis of USD/CAD for August 1, 2014

General overview for 01/08/2014 09:30 CET

The outlook has been adjusted slightly to black wave iv correction but the overall scenario hasn't been changed. The market has made another marginal high in black wave v. Now, the anticipated bigger corrective cycle should begin. This view is supported by the multiple bearish divergence that has been formed on the momentum oscillator. Breakout below the intraday support at the level of 1.0878 is the first confirmation, that top for green wave (v) is in place.

Support/Resistance:

1.0979 - WR3

1.0956 - Technical Resistance

1.0928 - Intraday Resistance

1.0901 - WR2

1.0878 - Intraday Support

1.0868 - WR1

1.0821 - Technical Support

Trading recommendations:

Short orders should be opened only if the level of 1.0878 is clearly broken, with SL above the level of the recent swing high and TP at the level of 1.0821.