FX.co ★ USD/CAD intraday technical analysis and trading recommendations for January 24, 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. However, the USD/CAD pair has broken above an important daily resistance (a prominent descending top) around 0.9970 level.

The downtrend line established in November 2012 has been broken too establishing a support zone between 0.9910 - 0.9940 which will provide a valid BUY entry on retesting.

The next resistance zone is located around 1.0040 - 1.0050 corresponding to last November's high price 1.0054. However, the current price levels being around 1.0000 are strong resistance which may probably cap the current bullish rise.

Resistance: 1.0040, 1.0080, and 1.0110

Support: 0.9940, 0.9910, 0.9880, 0.9855, and 0.9805.