FX.co ★ Technical analysis of USD/CAD for January 25, 2016

General overview for 25/01/2016:

The alternative count suggested last week is in play now as the wave four has overlapped the wave one top. In this current labeling, there is still one more wave up missed - wave 5 purple. The current-corrective cycle might extend the drop as low as the level of 1.000, so the correction might get very large, complex, and time-consuming.

Support/Resistance:

1.4690 - Swing High

1.4436 - WR1

1.4420 - Technical Resistance

1.4272 - Weekly Pivot

1.4228 - Intraday Resistance

1.4112 - Intraday Support

Trading recommendations:

Day traders should consider placing sell orders from the current levels as there is still one more wave to the downside to complete (wave (v) green). The SL for this trade should be placed above the level of 1.4228 and TP at the level of 1.4112 at least.