FX.co ★ USD/CAD Intraday Technical Analysis and Trading Recommendations for November 23, 2012

Last week, in the previous articles, we suggested that the potential downside movement remains valid as long as the pair is trading below 1.0040 and below 1.0000 area, the psychological resistance.

Price zone 0.9900 - 0.9860 (Important Fibonacci Levels) provided strong support expressing strong bullish price action which is manifest in the giant bullish engulfing daily candlestick.

On Friday the USD/CAD pair expressed strong bearish reaction towards 1.0020-1.0050, failing to consolidate above 1.0040 (the high of Thursday's DAILY candlestick). This indicated a strong bearish move towards 0.9995; then 0.9945 took place which actually occurred when Intraday Support around 0.9980 was broken down.
The Daily chart shows a narrow consolidation range 0.9950-0.9980, in which the USD/CAD pair has been trapped for 3 days so far. Breakdown of 0.9950 opens the way directly towards 0.9900 - 0.9860 where price action should be watched for further decisions.

Support: 0.9945, 0.9925, and 0.9875.
Resistance: 0.9980, 1.0010, 1.0040, and 1.0080.

• Recommendation

Price zone 1.0025 - 1.0040 provided an excellent long-term SELL entry with SL located above 1.0060.
Now 0.9980 is still considered to be another valid SELL entry on retesting targeting 0.9900 - 0.9860 initially.