FX.co ★ Technical analysis of USD/CAD for October 21, 2014

General overview for 21/10/2014 11:40 CET

The golden channel trend line has capped the market at the level of 1.1293, making this level a high for wave (b) blue. Currently the most appropriate labeling would suggest another wave down to complete wave (c) blue of the overall cycle. If this assumption is correct, then the price should test the level of 1.1209 and possibly break it.

Support/Resistance:

1.1381 - WR1

1.1293 - Intraday Resistance

1.1281 - Weekly Pivot

1.1209 - Intraday Support

1.1178 - WS1

1.1070 - 1.1080 Demand Zone |Key Level|WS2

Trading recommendations:

As long as the price trades above the level of 1.1070 the uptrend is intact and higher prices are expected here. Buying the dips is the way to trade this market, both for swing and day traders.