FX.co ★ USD/CAD intraday technical analysis and trading recommendations for January 22, 2013

The potential downside movement remains valid as long as the pair is trading below 1.0040 and below 1.0000 area, the psychological resistance.

The chart shows that a narrow consolidation range 0.9910 - 0.9970 located few pips above 0.9890 (50% Fibonacci level), which was broken through few weeks ago with bearish momentum towards 61.8% Fibonacci is around 0.9850 without further bearish pressure. Last week, bullish retracement took place near the area of 0.9910 - 0.9950 which capped the previous bullish attempt.

Although a higher weekly close was recorded last week, the USD/CAD pair will have to break above its declining DAILY trendline to enhance its bullish scenario which is apparently failing untill now.

An eventual return to levels around 0.9820 is likely to take place. However, the USD/CAD pair has to break and fixate above the 0.9950 level to invalidate its broader bearish scenario. If it happens, it will enable a run towards the 1.0055 level, then probably to 1.0080.

Resistance: 0.9950,1.0040, and 1.0080.

Support: 0.9910, 0.9880, 0.9855, and 0.9805.