Technical analysis of USD/CAD for December 27, 2013

General overview for 27/12/2013 15:45 CET

As anticipated yesterday, the level of SUPPLY zone has
been broken and the market is rising in impulsive fashion, just shy of the 61% Fibo
level at 1.0676. This level is line in sand for the bears and if it is broken,
then surely the next level of resistance is the recent swing high level at
1.0735. As long as the golden channel trend line holds, the intraday trend
remains bullish. On the other hand, any breakout lower below the level of
1.0617 will invalidate the overall bullish wave development and will put recent
DEMAND zone in view and even swing low at the level of 1.0559. 

Support/Resistance:

1.0735 – Swing High

1.0719 – WR1

1.0676 – 61%Fibo

1.0672 – Intraday Resistance

1.0651 – Intraday Support

1.0645 – Weekly Pivot

1.0617 – Impulsive Count Invalidation Line

Trading recommendations:

The level of 61% at 1.0676 is a good entry for a short trade opportunity but only for intraday scalpers. Otherwise, all bulls suppose to say long and wait for the tatrget areas to be hit.

The material has been provided by InstaForex Company – www.instaforex.com