Technical analysis of USD/CAD for Febuary 3, 2014

General overview for 03/02/2014 11:00 CET

 The ending diagonal formation in wave (v) blue has been finished and market rejected higher prices by making sudden sell-off to the downside.

We can count five impulsive waves from the top and the support for the wave 5 red is at the level of 1.1029. This is the level of technical support as well.

For today a corrective cycle is expected that might retrace some losses on this pair but please keep an eye on the level of 1.1076 as the current resistance level. Any breakout higher means weekly pivot level will be tested.

Support/Resistance:

1.1222 – Swing High

1.1213 – WR1

1.1134 – 1.1149 – Intraday Resistance Zone

1.1121 – Weekly Pivot

1.1076 – Intraday Support

1.1029 – Technical Support

1.1020 – WS1

1.0931 – WS2

Trading recommendations:

The level of 1.1029 should provide a good support for the price, so long positions should be opened from the level with SL below the level of 1.1019 and TP at the level of 1.1076. 

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