FX.co ★ USD/CAD Intraday Technical Analysis and Trading Recommendations for February 29, 2012

This week USD/CAD showed massive bearish reaction towards resistance area 1.0040-1.0060 manifested in the "Inverted Hammer" daily candlestick.

This resistance area which was able to keep USD/CAD prices below it for almost one month despite the several trials to break it, also corresponds to the downtrend line and the upper limit of the transverse channel depicted on the chart.

Yesterday, USD/CAD could successfully break its intraday support at 0.9940 which allowed the current decline of currency price to happen.

The pair has an intraday support at 0.9850 which is expected to delay further decline to allow the pair to retest broken support at 0.9920-0.9940.

Daily closure below 0.9920 confirms the bearish direction towards 0.9770.

Based on the previous analysis

Daily closure below 0.9920 gives the short signal towards 0.9770.

For Intraday traders, Selling the USD/CAD pair near 0.9940 will be good with SL placed above 0.9990.