Technical analysis of USD/CAD for 05/02/2019

Technical analysis of USD/CAD for 05/02/2019:

The key Fibonacci retracement is violated and the bounces are shallow so far

Market technical overview:

The USD/CAD pair is continuing its way down. The 61% Fibonacci retracement at the level of 1.3119 has been broken and the price has made a new local low at the level of 1.3068. Then the market bounced a little to test the Fibo level once again, but the bearish pressure is getting more visible again. The market might enter a corrective mode now, mainly due to the oversold conditions at the daily and lower time frames, but it will not take long for the price the resume the downtrend again. The key technical resistance is seen at the level of 1.3158 - 1.3164.

Weekly Pivot Points:

WR3 - 1.3420

WR2 - 1.3352

WR1 - 1.3204

Weekly Pivot Point - 1.3136

WS1 - 1.2987

WS2 - 1.2920

WS3 - 1.2772

Trading recommendations:

The outlook remains bearish, so all sell orders should be still kept open with a trailing SL moved to the level of 1.3164. Daytraders should try to enter the market as close at the level of 1.3163 as possible and the sell orders should be opened from this level as well. First targets are seen at the levels of 1.3068 and 1.3055.

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