FX.co ★ Technical analysis of USD/CAD for October 26, 2016

General overview for 26/10/2016:

The market keeps trading in a very tight congestion zone just below the recent local high at the level of 1.3397, but the lower levels are anticipated, as there are still uncompleted internal sub-waves in the market. The sudden decline towards the demand zone has been labeled as the wave a (black) of the overall corrective structure. There is still wave b (black) and c (black) missing from the overall correction. The projected target for wave c (black) has been raised to the level of 1.3250, just below the weekly pivot at the level of 1.3255.

Support/Resistance:

1.3397 - Wave a Top

1.3290 - 1.3311 - Demand Zone

1.3255 - Weekly Pivot

1.3157 - WS1

Trading recommendations:

Day traders might again consider opening the sell orders with SL just above the recent swing high and TP at the level of 1.3255.