USD/CAD intraday technical analysis and trading recommendations for February 8, 2013
Bearish rejection off 0.9987 (Wednesday’s high) expressed yesterday led to bearish movement targeting 0.9920. However, obvious bullish reaction was expressed towards 0.9930 which led to daily closure at 0.9978 which is above 50% Fibonacci Level around 0.9955.
The USD/CAD pair is now trading above 0.9955 level (50% Fibonacci), which has provided temporary support for the pair for this week. However, bullish consolidation above 0.9990 is required for more bullish domination.
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 this week before bulls appeared at 0.9930.
Support: 0.9960, 0.9920, and 0.9830.
Resistance: 1.0010, 1.0050, 1.0120, 1.0155, 1.0205, and 1.0270.
The material has been provided by Instaforex Company – http://www.instaforex.com/