FX.co ★ Technical analysis of USD/CAD for October 10, 2016

General overview for 10/10/2016:

The corrective cycle in wave X brown has been much longer than initially estimated, but is looks like it has been completed now in a form of a zig-zag pattern. Plese remembers, that according to Elliott Wave Principle, this kind of corrective patterns might evolve into double and triple zig-zags before the overall correction is finally done. Currently, the most important level is the gray zone labeled as demand zone, as any break out below this zone would indicate the corrective cycle is now completed. Moreover, the growing bearish divergence supports the bearish outlook.

Support/Resistance:

1.3312 - Intraday Resistance

1.3281 - Previous High

1.3229 - Weekly Pivot

1.3186 - Intraday Support

1.3147 - WS1

Trading recommendations:

Day traders should consider opening sell orders from current market levels with tight SL and TP set at the level of 1.3186.