08.07.201411:07 Forex Analysis & Reviews: Technical analysis of USD/CAD for July 8, 2014

General overview for 08/07/2014 10:00 CET

The market has chosen one of the possible corrective structures. Now, it looks like this cycle is completed if the level of 1.0678 is clearly broken. Otherwise, there is still a possibility of a little more extended wave (c) blue to the upside, with a target level in the area of the previous wave (iv) green of a lesser degree. When this structure is completed, the downside wave development should resume by entering the bearish zone.

Support/Resistance:

1.0766 - WR3

1.0750 - Technical Resistance

1.0731 - WR2

1.0690 - WR1

1.0678 - Intraday Support

1.0654 - Weekly Pivot

1.0614 - WS1

1.0578 - WS2

Trading recommendations:

Because one of the possible corrective structures has been completed, daytraders might start to open short positions from the current price levels with SL above the level of 1.0696 and TP at the level of 1.0652 with a possible downward extension.

Any other traders who does not feel comfortable trading ranges should refrain from trading until the corrective cycle is completed.