Technical analysis of USD/CAD for January 29, 2016

General overview for 29/01/2016:

The market still trades inside of the narrow dashed blue channel, but the 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 that indicates at least wave c purple should made 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 complex and more time-consuming.

Support/Resistance:

1.4690 – Swing High

1.4436 – WR1

1.4420 – Technical Resistance

1.4330 – 38%Fibo

1.4325 – Technical Resistance

1.4272 – Weekly Pivot

1.4156 – Intraday Resistance

1.3947 – Intraday Support

Trading recommendations:

We are still expecting bullish wave c to the upside. So again today day traders should consider placing buy orders 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.

usdcad_h1.jpg

The material has been provided by InstaForex Company – www.instaforex.com

Shares