FX.co ★ Technical analysis of USD/CAD for June 9, 2016

General overview for 09/06/2016:

The projected target zone has been hit overnight and even slightly violated to the downside. Nevertheless, the growing bullish divergence between the price and momentum oscillator supports the view that an upside rally is the next possible wave development. The first confirmation comes with the intraday resistance at the level of 1.2721 breakout.

Support/Resistance:

1.2653 - Intraday Support

1.2678 - 1.2700 - Projected Target For Wave X

1.2721 - Intraday Resistance

1.2825 - WS1

1.2984 - Weekly Pivot

1.3054 - WR1

1.3188 - Wave (i) High

1.3210 - WR2

Trading recommendations:

Day traders should keep an eye on the level of 1.2460 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.