FX.co ★ Technical analysis of USD/CAD for January 22, 2015

General overview for 22/01/2015 15:50 CET

Despite the fact that the wave 4 green was shorter in price and time than anticipated (I have been expecting more time consuming triangle corrective pattern), the wave progression unfolds as anticipated with the price making another higher high and hitting the weekly pivot resistance at the level of 1.2342 yesterday. The impulsive wave development to the upside has not been completed yet and another wave upward is being expected. Please, notice that the internal sub-wave -iv- blue might not have been finished yet and the correction might take a little more time before the uptrend resumes.

Support/Resistance:

1.2393 - Swing High

1.2342 - WR3

1.2310 - Intraday Support

Trading recommendations:

It has been advised to buy on the dips on this market, and after a nice move the daytraders and swingtraders are welcome to move the SL higher (below the 1.2342 level) or close the buy orders with profit and wait for the corrective cycle to complete.