USD/CAD Intraday Technical Analysis and Trading Recommendations for May 3, 2012
Considering the hourly chart of USD/CAD we can find the following:
The Yellow and Violet channels are both bullish due to the bullish moves achieved on last Monday and yesterday, while the Blue one is becoming transverse due to the yesterday's bearish reaction towards the upper limit of both Violet and Blue channels at Price Level of 0.9890 that occurred at the end of the yesterday’s session.
As for the intraday perspective, the USD/CAD pair may be forming a double bottom reversal pattern at 0.9805 which constituted the Intraday Support for the USD/CAD pair on Monday. However, a lack of bullish follow up and failure to break through 0.9890 yesterday is threatening this bullish scenario.
The USD/CAD currency pair will remain bullish as long as it is trading inside the Yellow channel above 0.9835 - 0.9850 which constitute the lower limit of both Yellow & Blue channels.
The double bottom pattern is probably targeting at 0.9935. However, at this moment a bearish breakout below the Yellow channel will invalidate the bullish scenario opening the way for a possible quick decline.
Bearish breakdown of 0.9835 will confirm another double top pattern at 0.9890 which will be targeting at 0.9770.
Based on the previous analysis:
It's recommended to have a BUY entry at 0.9835 - 0.9850 with SL below 0.9815 while TP levels are to be located at 0.9885 and 0.9935.
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