Technical analysis of USD/CAD for December 26, 2013
December 26, 2013 3:30 pm
General overview for 26/12/2013 15:40 CET
The short lived range breakout has been fully retraced and price has got back into range zone again.
Currently the outlook is still bullish according to main Elliott Wave count but please notice the growing clues for a possible top in place: the Head and Shoulders formation forming and a Bear Flag technical formation forming as well.
In this situation a breakout above the Weeky Pivot level and Technical Resistance level is needed to confirm the bullish case, otherwise, after the 1.0598 Intraday Support level breakout, the test of recent lows might occur.
Support/Resistance:
1.0736 – Swing High
1.0719 – WR1
1.0660 – Technical Resistance
1.0645 – Weekly Pivot
1.0642 – Intraday Resistance
1.0598 – Intraday Support
1.0572 – 1.0575 – DEMAND ZONE
1.0559 – Technical Support
1.0555 – WS1
Trading recommendations:
Still range breakout strategy should be used with just slightly changed entry levels:
In case of upside breakout, traders should place Buy Stop orders at the 1.0643 level with SL at the 1.0612 level and TP1 at the 1.0645 and TP2 at the 1.0660 level.
In case of downside breakout, traders should place Sell Stop orders at the 1.0598 level with SL at the 1.0614 level and TP1 at the 1.0572 level and TP2 at the 1.0559 level.
The material has been provided by InstaForex Company – www.instaforex.com
General overview for 26/12/2013 15:40 CET
The short lived range breakout has been fully retraced and price has got back into range zone again.
Currently the outlook is still bullish according to main Elliott Wave count but please notice the growing clues for a possible top in place: the Head and Shoulders formation forming and a Bear Flag technical formation forming as well.
In this situation a breakout above the Weeky Pivot level and Technical Resistance level is needed to confirm the bullish case, otherwise, after the 1.0598 Intraday Support level breakout, the test of recent lows might occur.
Support/Resistance:
1.0736 – Swing High
1.0719 – WR1
1.0660 – Technical Resistance
1.0645 – Weekly Pivot
1.0642 – Intraday Resistance
1.0598 – Intraday Support
1.0572 – 1.0575 – DEMAND ZONE
1.0559 – Technical Support
1.0555 – WS1
Trading recommendations:
Still range breakout strategy should be used with just slightly changed entry levels:
In case of upside breakout, traders should place Buy Stop orders at the 1.0643 level with SL at the 1.0612 level and TP1 at the 1.0645 and TP2 at the 1.0660 level.
In case of downside breakout, traders should place Sell Stop orders at the 1.0598 level with SL at the 1.0614 level and TP1 at the 1.0572 level and TP2 at the 1.0559 level.
The material has been provided by InstaForex Company – www.instaforex.com
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