FX.co ★ USD/CAD intraday technical analysis and trading recommendations for July 5, 2013

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

Since then, the pair has established a consolidation range between 1.0450-1.0560.

Despite the signs of bearish reversal expressed around 1.0550, all trials for breakdown below 1.0450-1.0425 have been aborted.

Today we have an obvious bullish breakout above 1.0560 which renders this price level a valid BUY entry on retesting.

This bullish breakout has a projection target extending up to 1.0670. However, we should notice the price action around 1.0655 as it corresponds to previous top that goes back to October 2011.