FX.co ★ Technical analysis of USD/CAD for December 8, 2016

General overview for 08/12/2016:

The market has violated the 61%Fibo at the level of 1.3227 and it is moving lower towards the next support at the level of 1.3129. The downside might be limited now, but the price must break out above the blue channel and then head towards the weekly pivot at the level of 1.3342. Please pay attention that the bullish divergence between the price and momentum oscillator supports the bullish view.

Support/Resistance:

1.3129 - 78%Fibo

1.3235 - Intraday Resistance

1.3342 - Weekly Pivot

1.3431 - WR1

1.3464 - Wave b High

Trading recommendations:

Day traders should open buy orders only if the level of 1.3235 is clearly violated. Otherwise, the sideways price action does not justify any trade for now.