FX.co ★ Technical analysis of USD/CAD for Febuary 24, 2014

General overview for 24/02/2014 14:20 CET

The upside correction for wave 2 green has been developed in a form of abc ZigZag structure and it looks like it is finished. Currently, the market has broken down below the intraday golden trend line and it looks like the impulsive decline is in progress here. The most important level for the bears is at the level of 1.1141 because any violation of this level would mean, that the supply zone between the levels of 1.1167 - 1.1192 will be tested again. Nevertheless, to keep the downside momentum going on, the market must break below the weekly pivot at the level of 1.1075 and fall farther towards the grey rectangle zone between the levels of 1.1016 - 1.1024. This is the most important level for the bulls and if this zone is violated, then lower prices will be seen down to the level of 1.0958.

Support/Resistance:

1.1192 - 1.1167 - Supply zone

1.1141 - Intraday resistance

1.1089 - Intraday support

1.1075 - Weekly pivot

1.1050 - 50%Fibo

1.1016 - 1.1024 - Supply breakthrough zone

1.0958 - WS1

Trading recommendations:

If the level of 1.1089 is broken, then sell orders should be opened as close to the level as possible, with SL above the level of 1.1141 and TP at the level of 1.1016.