Technical analysis of USD/CAD for January 21, 2014

General overview for 21/01/2014 08:40 CET

Still the corrective price action in the range zone between the levels of 1.0927 – 1.0983 continues.

The key to the downside is the golden trendline breakout, below the Weekly Pivot level and ideally below Intraday Support at the level of 1.0927.

On the other hand, the upper golden trendline is the key to the upside and breakout above the Intraday Resistance is bullish and last swing high is in view.

Please notice that if the upside breakout will happen before downside breakout, the count will be revised.

Support/Resistance:

1.1037 – WR1

1.0999 = Swing High

1.0983 – Intraday Resistance

1.0940 – Weekly Pivot

1.0927 – Intraday Support

Trading Recommendations:

Typical range breakout strategy should be used here to enter the position:

– in case of the level of 1.0983 break: long positions should be in play with SL below the level of 1.0964 and TP at the level of 1.1037

– in case of the level of 1.0928 break: short positions should be in play with SL above the level of 1.0999 and TP at the level of 1.0927

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