FX.co ★ Technical analysis of USD/CAD for May 9, 2016

General overview for 09/05/2016:

The choppy wave progression to the upside does not look like an impulsive wave, but more like an end of some sort of an ending diagonal. The main count still indicated a top for the wave b green might be in place and one more wave downside towards the technical support at the level of 1.2758 is anticipated. Moreover, in case of an extension upwards, the intraday resistance at the level of 1.2988 should put a lid on any rally, and the price is expected to reverse from this level anyway.

Support/Resistance:

1.2988 - Intraday Resistance

1.2897 - Intraday Support

1.2818 - Weekly Pivot

1.2758 - Technical Support

1.2675 - WS1

Trading recommendations:

Day traders should consider opening sell orders from the level of 1.2988 with a tight SL (10-15 pips) and TP open for now (might extend to around 1.2758).