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22.05.2012 11:30 AM
USD/CAD Intraday Technical Analysis and Trading Recommendations for May 22, 2012

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The USD/CAD pair 4H chart revealed a strong bearish rejection of 1.0050, which pushed the USD/CAD pair downside towards 0.9990.

The lower limits of the Violet and Blue channels at 0.9990 were tested providing strong support for the USD/CAD pair.

Bullish rejection towards 0.9990 allowed USD/CAD to initiate a new bullish swing towards 1.0225 establishing a significant support level at 1.0050 and the newer one at 1.0125.

Retesting of Price Level 1.0125 will be also a testing of the lower limit of the Blue channel which maybe a good BUY entry then.

The Violet channel on the 4H chart is quite steep and narrow that predicted its breakdown yesterday, which is expected to reach Price Level 1.0125 initially.

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On the Hourly chart, USD/CAD has been moving within the bullish Yellow channel, which has been broken to the downside today.

Retesting of the backside of 1.0185 (the backside of the broken channels ) opens the way for Price Levels 1.0125 initially, then probably 1.0050.

It's important to note that the pair has Intraday Resistance levels at 1.0200 & 1.0240 which shouldn't be bypassed today in order to achieve the bearish scenario.


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Mohamed Samy,
Analytical expert of InstaForex
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