31.12.201409:42 Forex Analysis & Reviews: Technical analysis of USD/CAD for December 31, 2014

General overview for 31/12/2014 08:40 CET

As anticipated yesterday, the last wave to the downside is still being expected here to complete the overall complex and time consuming corrective cycle in wave 4 purple. The projected target is at the level of 1.1558, but the price has bounced from the intraday support at the level of 1.1588, and now the corrective structure might be completed. Confirmation of this scenario comes with the breakout of the intraday resistance at the level of 1.1649, otherwise, the market will keep trading inside the neutral range zone. Please notice that any breakout above the level of 1.1665 is bullish and further high prices should be expected.

Support/Resistance:

1.1712 - WR2

1.1670 - WR1

1.1650 - Intraday Resistance

1.1623 - Weekly Pivot

1.1588 - Intraday Support

1.1581 - WS1

1.1558 - Technical Support

1.1535 - WS2

1.1500 - Invalidation Level

Trading recommendations:

Buy orders opened from the level of 1.1633 should be still kept open. The SL orders should be placed below the level of 1.1588 and TP at the level of 1.1672 with a possible extension upside to the level of 1.1733.