FX.co ★ USD/CAD Intraday Technical Analysis and Trading Recommendations for September 19, 2012

The USD/CAD pair found resistance around the price level of 0.9915 corresponding to the upper limit of the bearish channel breaking down the lower limit of the consolidation range at 0.9845 which previously acted as support level.

After breakdown of 0.9845, the market went to the downside reaching the price level of 0.9635, achieving the full target for this range bearish breakout located at 0.9745 and testing the lower limit of the depicted bearish long-term channel

Price level of 0.9710 constitutes an intraday Support level, bullish price action should be watched around this level. Otherwise, breakdown of this level will allow the pair to have another bearish swing.

Price level of 0.9840 should be watched for price action at retesting as it will probably offer a valid SELL entry with target at the lower limit of the channel around 0.9650. However, fixation above 0.9845 threatens again the bearish view considering this breakdown as a trap for sellers.