FX.co ★ Technical analysis of USD/CAD for June 2 2015

General overview for 02/06/2015 14:55 CET

As anticipated yesterday, the market is still in a corrective cycle and sub-wave to the downside is still missed (wave c green). It does not really matter now which labeling is correct as both waves point out a possibility of a downward corrective cycle with the first support at 1.2395. A mid-term bias is still bullish. When the corrective cycle is completed, new highs should be made.

Support/Resistance:

1.2575 - WR1

1.2561 - Local Swing High|Intraday Resistance|

1.2489 - Intraday Support

1.2422 - Weekly Pivot

1.2395 - Technical Support (weak)

1.2321 - Technical Support

1.2313 - WS1

Trading recommendations:

Daytraders and swingtraders should consider opening sell orders from the current levels with SL above 1.2491 and TP at the level of 1.2422, with a possibility of an extension downwards to the level of 1.2398. In longer perspective, buying on dips during the corrective cycle is the way to trade on this market at the moment.