FX.co ★ USD/CAD Intraday Technical Analysis and Trading Recommendations for March 27, 2012

According to the USD/CAD 1H Linear Regression Channel Chart :

Yesterday we highlighted a Head and Shoulders reversal pattern which provided a low-risk SELL entry at the right shoulder around 0.9997 which got triggered and almost achieved its TP level at 0.9900.

The USD/CAD pair is trending within strong downside movement and a steep bearish Violet channel. At the moment the pair is testing the lower limit of the Yellow channel around which we can observe the pair's Intraday support.

Bullish reaction towards this support level including bullish breakout above the upper limit of the violet channel at 0.9925 gives a good BUY entry with TP at 0.9945 & 0.9970.

Breakdown of 0.9900 level invalidates the bullish scenario and allows the pair to reach 0.9875.