FX.co ★ Technical analysis of USD/CAD for August 26, 2016

General overview for 26/08/2016:

A three-wave internal corrective cycle has been made. The low for this cycle is the intraday support at the level of 1.2857. Currently, if the count is correct, the market should impulsively move to the upside, violate the intraday resistance at the level of 1.2963 and rally towards the level of 1.3033. On the other hand, a lack of this kind of wave progression will result in more complex and time-consuming wave 2 progression.

Support/Resistance:

1.2655 - Count Invalidation Level

1.2664 - WS2

1.2857 - Intraday Support

1.2778 - WS1

1.2976 - Weekly Pivot

1.2963 - Intraday Resistance

1.2930 - 38%Fibo

1.2982 - 50% Fibo

1.2988 - WR1

1.3088 - WR2

Trading recommendations:

Day traders should consider opening buy orders on the dips during the corrective cycle, ideally around the weekly pivot zone. The SL should be placed below the level of 1.2764 and TP should be placed at the level of 1.2982.