01.02.201610:56 Forex Analysis & Reviews: Technical analysis of USD/CAD for Febuary 1, 2016

Long-term review

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General overview for 01/02/2016:

The pair keeps trading inside a narrow range zone, but an upside breakout is coming. The reason for that is diminishing downward momentum and bullish divergence, which might be seen between the price and momentum oscillator. Moreover, there is an uncompleted wave progression to the upside which indicates that wave c purple should reach a local high around the level of 1.4272. Please notice the larger uptrend is still intact in this time frame, but the corrective cycle might get more complex and more time-consuming.

Support/Resistance:

1.4690 - Swing High

1.4553 - WR3

1.4436 - WR2

1.4324 - Technical Resistance

1.4173 - WR1

1.4158 - Intraday Resistance

1.4061 - Weekly Pivot

1.3946 - Intraday Support

1.3798 - WS1

Trading recommendations:

We are still expecting bullish wave c to the upside. So, day traders should consider placing buy orders today if the intraday resistance at the level of 1.4156 is violated. The SL orders should be placed below the level of 1.4028 and TP at the level of 1.4271.

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