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

General overview for 06/10/2016:

The top for the wave (2) or b looks to be in place now and the first impulsive decline towards the weekly pivot has been labeled as wave i. Currently, the market is trying to develop the internal corrective cycle in wave ii. When this corrective cycle is completed, the wave (3) to the downside should start. The longer-term bias is bearish and one more wave to the downside should be expected in this pair.

Support/Resistance:

1.2910 - WS2

1.3000 - Technical Support

1.3028 - 1.3048 - Demand Zone

1.3066 - Intraday Support

1.3144 - Weekly Pivot

1.3233 - Intraday Resistance

1.3241 - WR1

1.3261 - 1.3281 - Supply Zone

Trading recommendations:

Day traders should refrain from trading until a clearer trading setup occurs.