FX.co ★ Technical analysis of USD/CAD for May 3, 2016

General overview for 03/05/2016:

Not much has changed in this pair since yesterday: the market is still trading above the intraday support and there is still a possibility that the ending diagonal pattern is forming right now in this market. It will act as a final wave of the whole corrective structure in wave Z. To confirm this scenario, the market must make one more sub-wave to the downside and then strongly rebound to the upside, targeting the first the intraday resistance at the level of 1.2587 and then the level of 1.2756. Otherwise the corrective wave progression will evolve into a more complex and time-consuming pattern.

Support/Resistance:

1.2434 - WS1

1.2498 - Intraday Support

1.2574 - Weekly Pivot

1.2587 - Intraday Resistance

1.2651 - WR1

1.2694 - Intraday Resistance

1.2756 - Wave XX High

1.2792 - WR2

1.2873 - WR3

Trading recommendations:

Day traders should consider opening buy orders only if the level of 1.2587 is clearly violated (H1 candle close above this level), with SL below the level of 1.2498 and TP at the level of 1.2694.