FX.co ★ USD/CAD Intraday Technical analysis June 7, 2011

Hello Traders ,

Area 0.9800 - 0.9820 acted a strong resistance level preventing higher movement of the currency pair .

As we notice we recently we had breakout of the short term bullish channel with potential movement to the downside .

On this chart we notice the strong rejection of 0.9800 level which followed by formation of lower lows .

Also we had double top pattern indicating potential reversal even on the short term , followed by strong breakout of the bullish channel.

Based on the previous analysis :

As long as the level 0.9800 and the short term downtrend are still holding the price below, we have a SHORT signal with primary target at 0.9750 then 0.9720

SL should be placed above 0.9850