FX.co ★ USD/CAD intraday technical levels and trading recommendations for August 29, 2013

The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as depicted in the chart. This happened when the pair established a consolidation range between 1.0450-1.0560 that expressed a false bullish breakout above 1.0555, which was followed by intensive bearish pressure that led to the breakdown of 1.0450 and 1.0380 with a record low of 1.0254.

As depicted in the chart, the price zone of 1.0325-1.0360 constituted strong support area. However, strong bearish pressure at 1.0440 was seen on the pair to breakdown the previous daily low of 1.0325. Then a prominent bottom was established around 1.0260. Since then, the pair has been bullish.

The bulls managed to break through above 1.0360. That is why the price level of 1.0460 has been visited quickly as expected.

Another significant Supply Level is located around 1.0505 (a previous mid-range). This was the key level for last week's movement as closure above it enabled the pair to reach 1.0560, where the upper limit is located.

Re-closure below 1.0505, which took place on Monday, puts bearish pressure again to get back towards 1.0460 with a high probability to extend the bearish movement towards 1.0350.

The previously mentioned inside daily bar, which represented weakness of the current bullish momentum, with failure of the bulls to push through the high around 1.0533 on Tuesday, still enhances bearish retracement off the current levels towards 1.0460-1.0420 provided that the pair manages to remain below 1.0495.

The price level around 1.0560 remains the nearest considerable resistance for the pair until it is broken to the upside.