17.12.201407:31 Forex Analysis & Reviews: Technical analysis of USD/CAD for December 17, 2014

General overview for 17/12/12014 06:20 CET

The corrective cycle is still in progress and first three waves look to be completed. Nevertheless, please notice, that this might be only the beginning of a larger correction in wave 4 purple, because this simple three waves down might be just a green wave of some other corrective structure. To confirm the corrective cycle is completed, the market must break above the intraday resistance at the level of 1.1672. Moreover, please notice the alternative count that still indicates a more impulsive wave progression to the upside that is valid as long as the level of 1.1590 is not violated.

Support/Resistance:

1.1727 - WR2

1.1672 - Intraday Resistance

1.1666 - WR1

1.1590 - Intraday Support

1.1531 - Weekly Pivot

Trading recommendations:

Not much has changed since yesterday as the market has made a very limited move: the bias is still bullish as the larger time frame trends are still bullish. So is a near and mid-term outlook for this pair. Thus, buying the dips is the way to trade this pair. SL for swing traders should be placed below the level of 1.1590, TP should be placed at the level of 1.1727.