16.04.201410:07 Forex Analysis & Reviews: Technical analysis of USD/CAD for April 16, 2014

General overview for 16/04/2014 08:50 CET

The upside wave progression has been finished, and the impulsive green count has been invalidated. The current wave A green top is just slightly above the supply zone and it marks an important resistance level now. Currently, the market should be developing wave B green of the larger upside structure unless the current top is wave X black (alternate labeling). The most important level for intraday traders is intraday resistance at the level of 1.0991. The price should fail at this level and continue lower, possibly in impulsive way.

Support/Resistance:

1.1010 - 1.1000 - Supply Zone

1.0991 - Intraday Resistance

1.0972 - Intraday Support

1.0955 - Weekly Pivot

1.0938 - 1.0942 - Intraday Demand Zone

Trading recommendations:

The short orders recommended since the beginning of the week should be still opened and any breakout below the level of 1.0972 creates an opportunity to add more shorts for intraday traders. All stop loss orders should be places above 1.1017 level. First target is at the level of 1.0940 with possibility of a downside extension to the level of 1.0900.