FX.co ★ Technical analysis of USD/CAD for September 17, 2014

General overview for 17/09/2014 11:20 CET

The alternative count has been invalidated due to wave 1 and wave 4 red overlaps and now the main count is in play. The pair has fallen out of the golden channel and now the main important question is whether the current wave progression is still a part of an impulsive wave 3 green to the upside (main count) or if the current wave progression is a part of a more complex and time-consuming corrective cycle in green wave 2 labeled as an alternative count. It seems there are two key levels on the chart, that might help to give more clues for a further wave development. To follow the main count, the market must now develop an impulsive five wave rally to the upside, that will clearly break the key level at the technical resistance at the level of 1.1027. However, if the level of 1.0931 is broken first, the chances are high, that market is following the alternative count of an unfinished irregular flat correction, labeled as alt:A and alt.B green.

Support/Resistance:
1.1097 - Swing Top
1.1037 - Weekly Pivot
1.1027 - Technical Resistance|Key Level|
1.0978 - WS1
1.0963 - Intraday Resistance
1.0931 - Intraday Support|Key Level|
Trading recommendations:
As long as the demand zone is not broken, the mid-term bias is still bullish so buying the dips in this pair is advised. For day traders the SL level would be below the level of 1.0930 and TP level is currently open.