FX.co ★ Technical analysis of USD/CAD for October 14, 2016

General overview for 14/10/2016:

As expected, USD/CAD moved lower yesterday and currently it is trading below the weekly pivot as the wave C unfolds. The whole move to the upside that constitutes the wave B is more corrective than impulsive, so there is still a chance for one more wave down. The most important level is the gray zone labeled as demand zone, as any break below it would indicate the corrective cycle is completed. Moreover, the growing bearish divergence supports the bearish outlook.

Support/Resistance:

1.3312 - Intraday Resistance

1.3281 - Previous High

1.3229 - Weekly Pivot

1.3139 - 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.