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

General overview for 22/10/2014 12:30 CET

The corrective cycle is getting more complex and time-consuming as the market is retracing deeper. The current key level is the upper golden channel boundary that should provide resistance and another leg down should be made to complete the corrective cycle. Any breakout higher would put the level of weekly pivot at the level of 1.1282 to test. Moreover, any further breakout higher is bullish and an alternative count indicating the low for wave 2 purple at the level of 1.1202 is in play. Otherwise, the intraday support at the level of 1.1202 should be broken and lower prices are expected.

Support/Resistance:

1.1381 - WR1

1.1292 - Intraday Resistance

1.1282 - Weekly Pivot

1.1256 - Intraday Resistance

1.1202 - Intraday Support

1.1178 - WS1

1.1159 - Wave (c) Blue Target

Trading recommendations:

Day trader should consider opening sell orders from the level of 1.1255 with SL above the level of 1.1292 and TP at the level of 1.1202 with a possible extension to the level of 1.1159.