FX.co ★ Technical analysis of USD/CAD for Febuary 24, 2016

General overview for 24/02/2016:

The С purple wave is still in progress and it looks like it needs one more push to the level of intraday resistance. A breakout above the intraday resistance at 1.3846 is needed to confirm this scenario. In case of a breakout below the level of 1.3637 occurs, the alternative count will be in play. Moreover, it is worth to mention, that the X brown wave may be still in development as well, and the pattern that it forms may evolve to (a)(b)(c)(d)(e) triangle. In a longer time frame, the corrective cycle from a top of 1.4687 is still in progress but it has evolved into a complex corrective structure. Within that structure, there is a missing Y brown wave pointing to the downside.

Support/Resistance:

1.3637 - Intraday Support

1.3656 - WS1

1.3784 - Weekly Pivot

1.3911 - Intraday Resistance

1.3916 - WR1

1.4041 - WR2

Trading recommendations:

It is recommended to buy on dips as an uptrend is still in play. The corrective cycle is violating the support levels, but the most important support at 1.3637 has not been broken yet. Bulls are still in control of the market, but a bullish reversal hasn't been confirmed yet.