USD/CAD Intraday Technical Analysis and Trading Recommendations for May 10, 2012 ^2012-05-10

Yesterday as expected, the USD/CAD intraday bullish outlook came to an end at price level of 1.0050 which corresponded to the upper limit of the Yellow channel and the Average Daily Range for the pair roughly.
After visiting Price Level 1.0050, the USD/CAD currency pair showed quite significant bearish price action heading towards 0.9995 breaking the lower limit of both the Blue & Violet channels.

Today USD/CAD has an Intraday Support level located at 0.9990 which corresponds to the lower limit of the Yellow channel and an Intraday Resistance level at 1.0030 which corresponds to the backside of the broken blue channel and the intermediate line of the Yellow channel.

Now we also can see a possible Head & Shoulders reversal pattern with neck-line at 0.9995 which needs to be broken in order to be confirmed.

Based on the previous analysis:

Price Level 1.0030 constitutes a low-risk SELL entry. However, breakdown of price level 0.9990 is also considered a valid SELL entry.

TP levels are to be located at 1.0000, 0.9970 and 0.9930. However SL should be located above 1.0065.

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