USD/CAD Intraday Technical Analysis and Trading Recommendations for May 8, 2012 ^2012-05-08

In yesterday's analyisis on the USD/CAD pair we mentioned that its outlook was still bullish. However, the bearish retracement  was expected before the continuation of the further bullish movement.

We also mentioned that the breakdown of Intraday Support Level 0.9960 confirms the bearish retracement towards 0.9925 and possibly 0.9885.

The USD/CAD pair has failed to break through and fixate below 0.9925 ( the lower limit of the Yellow channel ) which gathered bullish strength into the market shooting at higher levels reaching the current daily high at 0.9973.

Today after the USD/CAD pair has shown this quite strong bullish reaction towards 0.9925 breaking the upper limit of the bearish violet channel, the price level 0.9940 was considered as a significant Intraday support level and a valid BUY entry as well.

Price zone 0.9940-0.9950 corresponds to the lower limit of the Yellow & Blue channel and the backside of the broken upper limit of the Bearish Violet channel.

TP levels are to be located at 0.9970, 0.9990 and 1.0020.

A breakdown of the 0.9900 level invalidates the current bullish scenario.

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Analэzu vykonal Mohamed Samy, analytickэ expert spoloиnosti InstaForex Group © 2007-2013