25.09.201213:16 Forex Analysis & Reviews: USD/CAD Intraday Technical Analysis and Trading Recommendations for September 25, 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 testing the lower limit of the depicted bearish long-term channel which expressed a considerable bullish strength.

The USD/CAD pair reacted strongly towards the upper limit of the depicted channel pushing the pair to the downside testing the intraday Support zone 0.9720-0.9700 (neckline of a possible H&S reversal pattern)

It's important to notice that the USD/CAD pair is probably establishing an ascending bottom around 0.9777 which may act as intraday support to be watched.

Price level of 0.9840 still 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 confirming the possible bullish Head & Shoulders pattern depicted on the chart which will be targetting around 0.9920.