USD/CAD Intraday Technical Analysis and Trading Recommendations for May 28, 2012
The USD/CAD has been uptrending after testing price level 0.9990 within the depicted bullish Violet & Blue channels.
The lower limits of the Violet and Blue channels at 0.9990 were tested, providing the strong support for the USD/CAD pair.
Bullish rejection towards 0.9990 allowed USD/CAD to initiate a new bullish swing towards 1.0295 establishing a significant support level at 1.0050 and the newer one at 1.0125.
On Friday, price Level 1.0320 corresponding to the upper limit of the Violet channel, has resisted further upside movement providing Intraday Resistance for GBP/USD pushing the pair to the downside
The Violet channel on the 4H chart is quite steep and narrow that predicted its breakdown on Last Monday, which took place this week and is expected to reach the Price Level 1.0125.
The backside of the broken violet channel is located around 1.0260 which will be a valid low-risk SELL entry at restesting.
On the Hourly chart, the USD/CAD pair has been moving within the bullish Violet, Blue & Yellow channels which are all bullish.
We can easily notice that the USD/CAD was unable to reach a new high Last Friday. Instead, it showed the bearish reaction towards 1.0295 then was directed to the downside towards 1.0246.
The USD/CAD has broken the lower limit of the Yellow, Violet & Blue channels at 1.0250 which opens the way for the pair towards 1.0205 which may be broken too allowing the pair to reach 1.0150-1.0125.
Restesting of the backside of the broken bullish at 1.0250-1.0260 channels is considered a valid low-risk SELL entry with SL located above 1.0310.
The USD/CAD has its Average Daily Range located at 1.0190 which may provide some Intraday Support for the pair.
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