FX.co ★ Technical analysis of USD/CAD for September 30, 2016

General overview for 30/09/2016:

The abc corrective pattern in the wave IV looks completed, and the market is ready for another drop towards the demand zone (a grey rectangle on the chart). From the Elliott Wave Principle point of view, the downside cycle hasn't been completed yet, and more weakness in this market is expected. Currently, the market trades around the weekly pivot at 1.3145, and only a sustained violation of the 1.3191 level would invalidate the bearish outlook.

Support/Resistance:

1.3145 - Weekly Pivot

1.3046 - Intraday Support

1.3041 - WS1

1.3000 - Technical Support

1.2901 - WS2

Trading recommendations:

Day traders should consider closing the sell orders from this week with a nice profit and wait for another trading setup to occur.