FX.co ★ Technical analysis of USD/CAD for June 6, 2016

General overview for 06/06/2016:

The simple corrective structure has evolved into a WXY complex corrective pattern that is currently being developed in wave (ii). There is, however, a possibility that as long as the level of 1.2836 is not clearly violated, the current pattern might evolve into an even more complex WXYXXZ pattern, and this cycle will take even more time than the current one. On the other hand, only a clear, impulsive breakout above the wave (i) top at the level of 1.3188 will confirm the bottom for wave (ii) is in place and the market is developing wave (iii) to the upside.

Support/Resistance:

1.2825 - WS1

1.2836 - Green Count Invalidation Level

1.2910 - Intraday Support

1.2984 - Weekly Pivot

1.3054 - WR1

1.3074 - Intraday Resistance

1.3188 - Wave (i) High

1.3210 - WR2

Trading recommendations:

Day traders should keep an eye on the level of 1.2836 and place all SL orders for buy orders just below this level. The market is still in the corrective cycle, but buying the dips is the way to trade it now.