FX.co ★ Technical analysis of USD/CAD for August 23, 2016

General overview for 23/08/2016:

Another sub-wave up has been made that almost hit the 50% Fibo at the level of 1.2982. The clear, intraday bearish divergence has made then the price to move lower towards the weekly pivot at the level of 1.2976, but bulls managed to defend this level. Currently the pair is trading just above the weekly pivot in the middle of the range. Nevertheless, if the intraday support at the level of 1.2890 is violated, then the corrective wave b purple might get more complicated and time-consuming.

Support/Resistance:

1.2655 - Count Invalidation Level

1.2664 - WS2

1.2890 - Intraday Support

1.2778 - WS1

1.2976 - Weekly Pivot

1.2963 - Intraday Resistance

1.2930 - 38%Fibo

1.2982 - 50% Fibo

1.2988 - WR1

1.3088 - WR2

Trading recommendations:

Day traders should consider opening buy orders on the dips during the corrective cycle, ideally around the weekly pivot zone. The SL should be placed below the level of 1.2764 and TP should be placed at the level of 1.2982.