FX.co ★ USD/CAD Intraday Technical Analysis and Trading Recommendations for October 31, 2012

Last week considerable bullish price action was expressed towards 0.9770 (the newly established ascending bottom) which was considered to be a quite strong bullish manifestation.
Price zone 0.9820 - 0.9850 is now considered to be an Intraday Support zone. In order to resume the targets for the bullish patterns targeting around 0.9980 there should remain consolidating above this zone.
Price area 0.9990 - 1.0010 corresponding to the upper limit of the newly established 4H bullish channel is considered to be a strong Intraday Resistance zone where a bearish retracement is expected to take place towards 0.9820 - 0.9850 before further continuation of the bullish movements.
Although, the USD/CAD pair broke above this zone reaching 1.0000 - 1.0025 zone, the pair seems to be overbought and bearish retracement is highly expected towards 0.9970 where price action should be carefully watched.