FX.co ★ USD/CAD Intraday Technical Analysis September 5, 2011

USD/CAD currency pair is now testing 50% Fibonacci level of the swing low started originated from 1.0000 down to 0.9725.

It's important to notice that level 0.9900-1.0000 is a strong resistance for the pair which caused multiple bearish engulfing patterns to be formed.

This indicates the strength of the bears at this level, now being retested.

At the current price, we have a downtrend line, previous congestion zone 0.9840-0.9925 and 50% Fibonacci level.

We need to see bearish confirmation to go short for intraday targets.

Bearish confirmation maybe bearish hammer or engulfing candlestick.

SL should be 4H closure above 0.9925.

TP initially should be 0.9820 then 0.9777.