FX.co ★ USD/CAD intraday technical levels and trading recommendations for February 7, 2014

Bulls have managed to hit fresh highs (around 1.1220) that haven't been visited since 2009.

Recently, the USD is failing to keep its gains against CAD, and the USD/CAD pair was pushed to the downside, thus indicating weakness of the ongoing bullish momentum. This is manifested in the recent weekly candlesticks as well as the ongoing daily ones as depicted on the charts.

The prominent resistance zone is located around 1.1230-1.1250 corresponding to 50% Fibonacci level of the bearish movement that had been extending since March 2009 and ended in July 2011.

The daily chart reveals an atypical "head and shoulders" reversal pattern. This pattern if confirmed, the USD/CAD pair will have a projection target located at 1.0880.

The pair has a significant support zone between 1.0700 and 1.0730 representing the upper limit of a previous consolidation range that got broken last month.

The next destination for the USD/CAD pair will probably be price zone of 1.0700-1.0730.

Re-testing of this zone would probably provide a valid BUY entry for the mid-term.