Technical Analysis of USD/CAD for April 7, 2016
General overview for 07/04/2016:
The main long-term and the main short-term counts has been updated due to another possible wave progression on the higher time frames. In the monthly time frame we can see the market sell-off from the 1.4989 top down to the level of the monthly demand zone (1.3046- 1.2821). Moreover, this sell-off is a part of the corrective structure in wave 4 purple, which means in the long term that there is one more wave to the upside still needed to complete the structure. In the weekly time frame we can see the downward progression hitting the grey rectangle demand zone, but this might be not the end of the overall corrective structure as the wave 4 purple might evolve into more complex and time consuming correction. The labeling in the daily time frame shows the possible triple zig-zag structure that is almost completed. There is only wave Z brown to the downside missing and the market might be ready to reverse to the upside. In the H4 time frame the downward count is presented with more details, together with the non-linear dynamic regression channel that indicates an incoming possible reverse or bounce in this pair. The detailed count in the H1 time frame shows the current wave development in two counts: main and alternative. The main count still indicates one more wave to the downside to complete wave Z brown, but the alternative count points out, that a possible impulsive wave progression to the upside has started already. Nevertheless, any break out below the level of 1.3000 will invalidate this view.
1.2814 - WS1
1.2850 - Swing Low
1.3000 - Invalidation Level
1.3048 - Weekly Pivot
1.3124 - Intraday Resistance
1.3146 - WR1
1.3241 - WR2
Day traders should place buy stop orders at the level of 1.3148 with SL below the level of 1.3000 and TP open for now. Any big, impulsive, long hourly candle that breaks out above the intraday resistance might suggest that bulls are back in control and we will try to join them.
The material has been provided by InstaForex Company - www.instaforex.com