02.08.201312:21 Forex Analysis & Reviews: USD/CAD H1 analysys for 02/08/2013

General overview for 02/08/2013 10:00 CET:

It turns out that wave (ii) correction was Running Flat instead of anticipated Irregular Flat but anyway the price went in the desired direction. It took out the previous SUPPLY area and H1 candle had closed way above the supply level. The target level of 1.0320 of yesterday’s recommended trade was hit easily.
The degree of the labeling has been changed to one degree higher - that means the traders should expect deeper correction in wave (ii).
The orange rectangle represents the Fibo Cluster made of two recent swings that will act like a strong resistance now. As one can see just above this cluster there is small SUPPLY zone that will provide intraday resistance for price as well. This zone is: 1.0387 - 1.0392.
Intraday pullback is expected now in wave (ii). The first level is 1.03611 (weak support). If it will not hold, the next area is 50% Fibo, WR1 and previous wave four area at 1.0330 - 1.0343.

Support/Resistance:

1.0408 - WR2

1.0387 - 1.0392 - Small SUPPLY ZONE

1.0381 - 1.0381 - Fibo Price Cluster

1.0361 - Intraday Support

1.0338 - WR1

1.0333 - Wave (iv) High | Intraday Support |

1.0315 - 1.0330 - SUPPLY ZONE

1.0296 - Weekly Pivot

1.0263 - Intraday Support

1.0244 - Swing Low

1.0225 - WS1

Trading recommendations:

After five waves of advance there is some correction expected, so intraday short migh be a good idea to gain some small profits. MORE attractive potential is to wait and place pending buy orders on support levels in anticipation of more powerfull wave (iii) to the upside.