FX.co ★ Technical analysis of USD/CAD for May 28, 2015

General overview for 28/05/2015 09:20 CET

Diminishing momentum in this market shows that the recent up leg to the level of 1.2491 is just a part of a corrective cycle wave b purple and the market should continue to move lower in leg c purple soon. Two possible target levels for this sub-wave were projected on the intraday chart: one is a zone between the levels of 1.2356 - 1.2375 and the other is support at the level of 1.2321. Please notice the corrective cycle in wave 2 blue might get more complex and time-consuming than a simple abc irregular corrective cycle.

Support/Resistance:

1.2491 - Swing High

1.2456 - WR1

1.2395 - Intraday Support

1.2356 - 1.2376 - Support Zone

1.2321 - Technical Support

Trading recommendations:

Daytraders should consider opening sell orders only is the intraday support at the level of 1.2359 is violated. The SL orders should be placed very tight (20-30 pips) and TP orders should be placed at the level of 1.2321.