USD/CAD Intraday Technical Analysis and Trading Recommendations for May 7, 2012 ^2012-05-07

Considering 1H chart of the USD/CAD pair we can find the following:

Price zone 0.9965-0.9955 provided significant support for the USD/CAD pair pushing the pair to the upside towards 0.9985.

The previously mentioned double bottom reversal pattern at 0.9835 was able to achieve its target levels at 0.9925 and 0.9960.

The expected scenario for the USD/CAD pair is still bullish. However, the bearish retracement  is expected before further bullish movement takes place.

Breakdown of the lower limit of the violet channel at 0.9960 confirms the bearish retracement towards 0.9925 and possibly 0.9885.

Price Level 0.9925 corresponds to the intermediate line of the Yellow channel & the lower limit of the Blue channel is expected to provide support for the the USD/CAD pair.

Another Intraday support level is located at 0.9885 corresponding to the lower limit of the Yellow channel.

Breakdown of Price Level 0.9855 invalidates the bullish scenario.

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