FX.co ★ Technical analysis of USD/CAD for June 23, 2016

General overview for 23/06/2016:

The bottom for the wave 2 seems to be in place at the level of 1.2678, so the market should try to break out higher above the intraday resistance at the level of 1.2858. Moreover, the growing bullish divergence between the price and momentum oscillator is indicating a possible sharp move upward, which supports the view regarding the upward trend renewal.

Support/Resistance:

1.2654 - Wave X Bottom

1.2678 - WS1

1.2818 - 61%Fibo

1.2860 - Intraday Resistance

1.2881 - Weekly Pivot

1.3015 - WR1

1.3080 - Wave 1 Top

Trading recommendations:

The first impulsive wave has been made after a long-term corrective cycle bottomed, so the bias is to the upside. Buying dips in this market with SL below the level of 1.2654 is the way to trade it now.