Technical analysis of USD/CAD for May 12, 2015 Market Analysis Review

General overview for 12/05/2015 07:50 CET

The market is still trading below the golden trend-line resistance and the trading range is getting narrower. So, the breakout is due soon. The main count still shows a potential for one more wave to the downside to be made ( wave (c) blue), but the alternative count indicates the opposite if the market breaks the supply zone between the levels of 1.2186 and 1.2203.

Support/Resistance:

1.1938 - Swing Low

1.1964 - WS1

1.2043 - Intraday Support

1.2073 - Weekly Pivot

1.2161 - Intraday Resistance

1.2189 - 1.2203 - Supply Zone

1.2206 - WR1

Trading recommendations:

As long as the market is below the golden trend-line resistance, the daytraders should consider opening sell orders with SL above the level of 1.2162 and TP at the level of 1.2043 with a possible extension downward. However, any breakout above the golden trend line will produce an opportunity to open a buy trade with tight SL and TP at the level of 1.2203.

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