01.06.201511:15 Forex Analysis & Reviews: Technical analysis of USD/CAD for June 1, 2015

General overview for 01/06/2015 10:40 CET

An upward momentum is visibly diminished and the more complex corrective cycle is unfolding in the intraday H1 time frame. The other alternative count presented on the chart points out a little longer-than-expected wave -iii- and a top for wave -v- (and 1 blue) at the level of 1.2537. It does not really matter now what labeling is correct as both of them point out a possibility of a downward corrective cycle with the first support at 1.2395. The mid-term bias is still bullish and when the corrective cycle is completed, new highs should be made.

Support/Resistance:

1.2575 - WR1

1.2537 - Local Swing High|Intraday Resistance|

1.2422 - Weekly Pivot

1.2395 - Intraday Support

1.2321 - Technical Support

1.2313 - WS1

Trading recommendations:

Daytraders and swingtraders should consider opening sell orders from the current price levels with SL above 1.2537 and TP at the level of 1.2422, with a possibility of an extension downwards to the level of 1.2398. In longer perspective, buying on dips during the corrective cycle is the way to trade this market until proved otherwise.