FX.co ★ Technical analysis of USD/CAD for January 18, 2017

General overview for 18/01/2017:

Another marginal lower low had been made on this market, but both scenarios are still equally valid as none of the important levels were violated. The bottom for the wave c of wave (c blue) might have been placed at the level of 1.3018 and growing bullish divergence between the price and the momentum oscillator supports this view. That would suggest the market might try to break out above the intraday resistance at the level of 1.3188 and head higher towards the next resistance at the level of 1.3259. However, in case of a failure, the down leg might extend to the level of 1.2883.

Support/Resistance:

1.2883 - WS2

1.2994 - WS1

1.3018 - Intraday Support

1.3143 - Weekly Pivot

1.3188 - Intraday Resistance

1.3259 - WR1

1.3293 - Technical Resistance

1.3408 - WR2

Trading recommendations:

Day traders should consider opening buy orders only if the level of 1.3188 is clearly violated. TP should be left open for now, while the first logical level is the weekly pivot resistance at the level of 1.3408.