USD/CAD intraday technical analysis and trading recommendations for February 7, 2013
Obvious bearish rejection off 0.9987 (yesterday’s high) has been expressed, which led to the daily closure at 0.9955. It is short-term bearish signal.
The USD/CAD pair is now trading below 0.9955 level (50% Fibonacci) which has provided temporary support for the pair for this week.
The USD/CAD pair strongly rose last week pushing steadily above psychological barrier 1.0000. The upside move has been extending towards 1.0100 and the possibility of a bullish move remains valid unless 0.9920 – 0.9960 zone is broken.
Obvious bearish price action was seen around the price level of 1.0100, which is manifested in inverted "hanging-man" daily candlestick that gave us early indications that the bullish momentum has faded away, resulting in the depicted long RED daily candlestick of Tuesday and Thursday. Then the same scenario was repeated during the past two days showing strong bearish daily candlestick that will probably lead the price towards 0.9920.
Support: 0.9960, 0.9920, and 0.9830.
Resistance: 1.0010, 1.0050, 1.0120, 1.0155, 1.0205, and 1.0270.
Buying the pair is recommended above 0.9920 (backside of the broken downtrend line and 61.8% Fibonacci) targeting 0.9970, 1.0120 then 1.0205 and SL as 4H closure below 0.9900.
The material has been provided by Instaforex Company – http://www.instaforex.com/