20.03.201507:52 Forex Analysis & Reviews: Technical analysis of USD/CAD for March 20, 2015

General overview for 20/03/2015 06:45 CET

The market has come up to test important resistance and weekly pivot at the level of 1.2746. Now, it is slightly giving up gains. The move up had been labeled as impulsive wave (i) green and current corrective cycle might be a wave (ii) green in progress. The most important level for this count is the intraday support at the level of 1.2596 and 1.2634, because any breakout lover will immediately expose the swing lows and enhance the chances for market making wave (b) blue instead of wave (ii) green. On the other hand any bounce/reversal from one of the support levels might suggest more gains in this market as the upward wave will develop, but the key level to the upside is another higher high above the level of 1.2833. Lack of this impulsive wave progression to the upside might suggest a wave 4 green triangle (or any other more complex corrective cycle) is still in progress.

Support/Resistance:

1.2388 - Invalidation Level

1.2416 - WS3

1.2447 - Green Impulsive Count Invalidation Level

1.2495 - WS2

1.2596 - Intraday Support

1.2634 - Intraday Support

1.2668 - WS1

1.2756 - Intraday Resistance|Key Level|

1.2746 - Weekly Pivot

Trading recommendations:

Daytraders should keep an eye on the intraday support at the levels of 1.2634 and 1.2597 and consider to open buy orders from this levels with a very tight SL (10-20 pips).