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

General overview for 26/01/2016:

The USD/CAD pair moved higher in its corrective cycle. Currently, it is trading just below the 38%Fibo at the level of 1.4330. This level should act as strong resistance and the price should reverse to the downside as there is still one more wave missing. 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

1.4330 - 38%Fibo

1.4325 - Intraday Resistance

1.4272 - Weekly Pivot

1.4228 - Intraday Support

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 missing (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.