FX.co ★ Technical analysis of USD/CAD for September 22, 2014

General overview for 22/09/2014 09:20 CET

There are two Elliott Wave counts, main and alternative, presented here on two charts with different time frames. The first one is the main count on the hourly chart, it indicates a bullish wave progression to the upside after successful completion of a double zigzag pattern in green wave (ii). The first clue that would support this point of view is present when the golden trend line is broken, a weekly pivot at the level of 1.0971 is broken as well and the price is moving in impulsive fashion. The key level here has been labeled as demand breakthrough zone and it is between the levels of 1.1028 - 1.1038. The alternative count has been presented in the H4 chart, where traders can see two possible forms of a corrective cycle: running and irregular flat. It looks like the running flat might be completed already. Now, the market is expected to make impulsive five-wave progression. Otherwise this corrective cycle might fail and become more complex and time-consuming.

Support/Resistance:
1.0809 - 1.0838 - Demand Zone
1.0885 - Intraday Support
1.0979 - Weekly Pivot
1.1028 - 1.1038 - Demand Breakthrough Zone
1.1065 - WR1
1.1097 - Swing High

Trading recommendations:
Day traders and swing traders should consider opening buy positions here with SL below the level of 1.0884 and TP at the level of 1.1028. However, breakout above 1.1038 allows to add to the long position.