FX.co ★ USD/CAD intraday technical levels and trading recommendations for December 18, 2013

An important resistance level was located around 1.0500. This was the key level for the previous week's movement as many consolidation ranges were established between 1.0470-1.0550.

The most prominent support zone was located around 1.0250. On September 19, the pair expressed a false breakdown reaching 1.0180 where an obvious bullish rejection was expressed to get the pair back above 1.0250 again resulting in a bullish Hammer weekly candlestick.

As expected, the bullish momentum was expressed at retesting of the lower limit of the ongoing channel around 1.0280 pushing it higher towards 1.0460, and then 1.0500 which was bypassed.

Two weeks ago, the bulls established an ascending bottom around 1.0400 after a period of consolidation between 1.0400-1.0500.

Daily fixation above 1.0475 enabled the pair to reach 1.0575, 1.0600, and then 1.0650 where a previous top "established in October 2011" was located.

The price level around 1.0570 was mentioned to be the nearest support level for the pair.

In the previous articles, price zone of 1.0650-1.0700 was suggested for a possible sell position, profits was taken at 1.0570 to avoid the current bullish rejection.

Failure to breakdown of 1.0570 will probably open the way again towards 1.0650 for further retesting. Our SL should be lowered to 1.0650 to offside the remaining risk.

Fixation above 1.0650 will probably allow the bulls to initiate a new ascending impulse towards 1.0700 initially.