FX.co ★ Technical analysis of USD/CAD for January 26, 2015

General overview for 26/01/2015 12:50 CET

The market step by step makes regular higher highs to complete the impulsive wave progression and trades in a very clear bullish golden channel. Please, notice this might be still a part of more complex corrective cycle in the wave iv black as the progression does not look clearly impulsive. This is why any breakout lower from the golden channel would directly expose the intraday support test at the level of 1.2309. However the overall bias is still bullish as the wave v black still has not been made yet.

Support/Resistance:

1.2473 - Swing High

1.2320 - Weekly Pivot

1.2309 - Intraday Support

1.2181 - WS1

Trading recommendations:

As long as the price stays above the level of 1.2309, choppy trading conditions are expected and daytraders should consider to open only a buy orders with SL just below this level, using any scalping strategy to gain 20-30 pips.