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    Technical analysis of USD/CAD for May 25, 2015

    General overview for 25/05/2015 09:40 CET

    AAccording to the main count, wave 5 impulsive structure to the upside had been completed. Now, it looks like it is time for a corrective cycle to begin. The support for this view comes with one of Elliott wave rules, that says that the length of wave 5 is very often equal to the length of the wave 1. This kind of relationship is shown in the current technical picture. There is still a slight possibility that the market will make one more marginal spike higher above the intraday resistance at the level of 1.2320 to complete an internal sub-wave -v. A break below the level of 1.2216 is likely to invalidate this view. Please notice that another confirmation of a short-term top comes from building bearish divergence between the price and the momentum oscillator. The first level of support is projected at 1.2146.

    Support/Resistance:

    1.2320 - Intraday Resistance

    1.2256 - Intraday Support

    1.2234 - Weekly Pivot

    1.2146 - WS1

    Trading recommendations:

    Daytraders should consider opening sell orders as close to the level of 1.2320 as possible with a very tight SL ( 20-30 pips) and set TP orders at the level of 1.2256 with a possible extension downward to the level of 1.2234.

     

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