Technical analysis of USD/CAD for July 21, 2015 Market Analysis Review

General overview for 21/07/2015 09:00 CET

As mentioned yesterday, the sideways corrective cycle will continue for some time now in wave 2 black or wave alt: iv green. Nevertheless, it is still a correction that has tested the golden trendline from the downside and got rejected right on the level of 1.3022. Please notice the market is trading in a tight range, but a breakout to the upside is expected to complete the impulsive wave progression. The first weekly technical target for both counts is seen at the level of 1.3072. Only a sustained breakout below the technical support at 1.2804 would invalidate the bullish scenario.

Support/Resistance:

1.3072 - WR3

1.3022 - WR2

1.3006 - WR1

1.2955 - Weekly Pivot

1.2947 - Intraday Support

1.2932 - WS1

1.2890 - WS2

1.2862 - WS3

1.2804 - Technical Support

Trading recommendations:

Buying on dips is the way to trade on this market and daytraders should consider opening sell orders only if the level of 1.2947 is clearly violated ( hourly candle close below this level).

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

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