FX.co ★ USD/CAD Intraday Technical Analysis and Trading Recommendations for November 7, 2012

The pair has been trending down when a bullish breakout above the bearish daily channel took place. However, the potential downside move remains valid as long as the pair is trading below 1.0040 and below 1.0000 area, the psychological resistance.
On Friday, further downside movement was anticipated when the USD/CAD pair gave strong bullish reaction towards 0.9950 - 0.9925, a confluence of previous consolidation range acting as support.
The trading range for this week is between the key support around 0.9660 and key resistance around 1.0130.
Yesterda intraday support around 0.9925 was broken down allowing the USD/CAD pair to initiate a strong bearish swing approaching the lower limit of the depicted bullish channel around 0.9850.
Price Zone 0.9850-0.9810 constitutes an Intraday Support zone corresponding to the lower limit of the channel.

Support: 0.9950,0.9925,and 0.9875.
Resistance:0.9990,1.0010, and 1.0040.

Recommendation

Obvious breakdown below 0.9925 supported the bearish scenario in the short-term targeting 0.9860 - 0.9840 initially.
Price Action towards the price zone 0.9850-0.9810 should be watched carefully for a possible valid BUY entry with SL is located below 0.9770.