FX.co ★ USD/CAD Intraday Technical Analysis and Trading Recommendations for August 16, 2012

The USD/CAD pair movement was sluggish bearish during the previous days of consolidation which is manifested within the transverse direction of the Yellow & Blue channels depicted on the chart. In fact, still there was no significant price action until Friday when the USD/CAD pair has broken its Resistance level around 0.9920 which was followed by another sluggish movement during this week.
Price zone of 0.9920 was regarded as an intraday Support level for the pair where a BUY entry was suggested yesterday. However, the pair went down towards the lower limit of the Yellow channel around 0.9880 which still constitutes a strong Intraday Support level.
The USD/CAD pair has a significant intraday Resistance level around 0.9900 corresponding to the midline of the Yellow channel which needs to be broken in order to resume the bullish movement aiming at higher targets towards 0.9930 initially.
Bearish breakdown of 0.9880 currently invalidates the bullish scenario.