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Technical analysis of USD/CAD for October 20, 2014

General overview for 20/10/2014 09:45 CET


The count has been slightly changed as the previous waves 1 and wave 2 overlapped. The main reference level for this count is the key zone at the level of 1.1070, because any violation of this level invalidates the purple impulsive count and makes main labeling very probable. The current corrective cycle might be the beginning of a very large degree correction that will be complex and time consuming but there is no confirmation of this kind of wave progression just yet and it is still very possible that the impulsive wave sequence in form of 1-2, (i) - (ii), i-ii, (1)-(2) pattern will result with explosive upward progression soon. The first projected target is at the level of 1.1725.


Support/Resistance:


1.1381 - WR1


1.1293 - Intraday Resistance


1.1281 - Weekly Pivot


1.1209 - Intraday Support


1.1178 - WS1


1.1070 - 1.1080 Demand Zone |Key Level|WS2


Trading recommendations:


As long as the price trades above the level of 1.1070 the uptrend is intact and higher prices are expected here. Buying the dips is the way to trade this market, both for swing and daytraders.


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usdcad_h1.jpgThe material has been provided by InstaForex Company - www.instaforex.com