FX.co ★ Technical analysis of USD/CAD for Febuary 8, 2016

General overview for 08/02/2016:

The market has been capped just at the technical resistance level of 1.3908, but it does not look like it is an end of a rally as this move higher is the biggest correction in the overall downtrend from a top of 1.4688. This might mean the ABC cycle is completed and if the level of 1.3908 is violated, then an impulsive wave progression to the level of 1.4102 might start very soon. The intraday support at the level of 1.3780 should provide bulls with support and all traders should keep an eye on it for eventual violation. Please notice the pair is still trading in the bearish zone and only a breakout higher would be the first clue the that a local low at the level of 1.3638 is in place.

Support/Resistance:

1.3638 - Local Low

1.3666 - WS1

1.3780 - Intraday Support

1.3880 - Weekly Pivot

1.3908 - Intraday Resistance

1.4102 - Technical Resistance

1.4126 - WR1

1.4343 - WR2

Trading recommendations:

Buy orders placed last Friday have hit the TP level this morning and should be closed now.

For today, a trading plan remains the same: day traders should consider buying on dips with SL below the level of 1.3780 and TP at the level of 1.4102. Please notice that this entry might be kept longer for a swing trade as well.