General overview for 07/07/2014 10:50 CET This pair is still in the corrective cycle that has been labeled as a simple (a)(b)(c) structure for now, but it might get more complex and time consuming. There are two types of the correction that might be in progress now and they have been indicated on the chart in brown and blue arrows. The main scenario (brown arrows) indicates a possibility of a irregular flat correction with the wave (c) blue target in the area between the levels of 1.0750 - 1.0766. The other scenario, the blue one, indicates another corrective cycle that might be a sideways range trading market in a regular flat correction with the target below the technical resistance at the level of 1.0695. Support/Resistance:
1.0766 - WR3
1.0750 - Technical Resistance
1.0731 - WR2
1.0690 - WR1
1.0678 - Intraday Resistance
1.0654 - Weekly Pivot
1.0614 - WS1
1.0578 - WS2
Trading recommendations:
Buying the dips in corrective structure seems to be the strategy for those traders who like to trade a range/corrective structures. In that case, the entry levels should be as close as possible to the level of 1.0618 with a very tight SL, and the TP order should be set above the level of 1.0678 with a possible upside extension.
Any other traders who does not feel comfortable trading ranges should refrain from trading until the corrective cycle is completed.
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on market trends you may visit via Technical analysis of USD/CAD for July 7, 2014 . Thanks for your support on Technical analysis of USD/CAD for July 7, 2014
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