FX.co ★ Technical analysis of USD/CAD for July 22, 2016

General overview for 22/07/2016:

The wave (b) has evolved into a triple-three pattern, a more complex and time-consuming corrective cycle. Currently, the market should start to develop another wave to the downside, and any violation of the level of 1.3011 will be the first clue that the wave (c) is in progress. The growing bearish divergence between the price and momentum oscillator is supporting the view.

Support/Resistance:

1.2087 - WS1

1.2972 - Weekly Pivot

1.3011 - Intraday Support

1.3035 - 61% Fibo

1.3085 - WR1

1.3112 - Intraday Resistance

1.3138 - Local High

Trading recommendations:

Day traders should consider opening sell orders from the level of 1.3013 with tight SL and TP open for now. The reason for the trade is wave (c) to the downside anticipation.