11.10.201611:35 Forex Analysis & Reviews: Technical analysis of USD/CAD for October 11, 2016

General overview for 11/10/2016:

As anticipated yesterday, the top for the wave X brown has been established at the level of 1.3312 and now the market is in decline. The first wave of this decline has been done with a low at the level of 1.3139 (now intraday support). Currently the price is testing the weekly pivot at the level of 1.3229 and it should be rejected. Please remember, that according to Elliott Wave Principle, this kind of corrective patterns might evolve into double and triple zig-zags before the overall correction is finally done. The most important level is the gray zone labeled as demand zone, as any break out below this zone would indicate the corrective cycle is now completed. Moreover, the growing bearish divergence supports the bearish outlook.

Support/Resistance:

1.3312 - Intraday Resistance

1.3281 - Previous High

1.3229 - Weekly Pivot

1.3139 - Intraday Support

1.3147 - WS1

Trading recommendations:

Day traders should consider opening sell orders from current market levels with tight SL and TP set at the level of 1.3186.