FX.co ★ USD/CAD intraday technical analysis and trading recommendations for May 13, 2013

Price zone 1.0200 - 1.0235, which corresponded to a downtrend line, was broken through obviously. The continuation of flag pattern failed to reverse price to the upside on retesting due to the strong bearish pressure which pushed the pair again inside the channel below 1.0100.
Daily closure below 1.0085 (50.0% Fibonacci), that took place on Friday, opened the way towards the next support level around 1.0016-0.9995 (61.8% Fibonacci) which provided a BUY entry as expected last week.
For those who took bullish deals at 1.0016, some profits should be secured and SL should be raised to be slightly below 1.0045.
For those who missed the trade, Price action should be watched at retesting of 1.0085 (50% Fibonacci Level) for another possible BUY entry provided that the USD/CAD pair remains trading above 1.0050 as its breakdown will bring 1.0016 into consideration again.