FX.co ★ USD/CAD Intraday Technical Analysis September 7, 2011

On 29 June, the USD/CAD currency pair managed to break the bullish channel started at 0.9445 with a full body bearish candlestick marked on the chart.

These days the pair is retesting the levels of the backside of this broken channel which is also 61.8% Fibonacci of the last swing down 1.0000 - 0.9725.

It's important to mention that we have two resistance levels around 9911 & 9970.

Yesterday we had a Doji candlestick indicating weakness of the current bullish move and strength of this resistance level.

On the 4H timeframe we have a slightly bearish channel with its upper limit around the previously mentioned resistance levels 9911 & 9970.

Yesterday we had the candlestick bearish confirmation ( bearish engulfing candlestick ) around the mentioned resistance.

Thus we have a suggested short position from these levels with SL 4H closure above 0.9970.

TP should be 0.9830 then 0.9760 then we see the reaction towards the lower limit of the marked channel for further targets.