FX.co ★ USD/CAD intraday technical analysis and trading recommendations for June 26, 2013

The USD/CAD pair was declining for two successive weeks until strong recovery was observed on June 14.

Daily closure above 1.0260, that took place last Wednesday, allowed another bullish impulse to take place.

The USD/CAD pair rose steeply last week approaching key-resistance level of the ascending channel around at 1.0530 as depicted on the chart.

As expected, resistance level located at 1.0530 expressed quite significant bearish rejection manifested in the "Inverted Hammer & Spinning Top" successive daily candlesticks which enhanced our view.

Reversal of the ongoing bullishness may be taking place around the current levels especially after the bearish pressure manifested. This may provide a valid SELL entry with SL located above 1.0595 with target levels located at 1.0420 then 1.0340.