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FX.co ★ USD/CAD Intraday Technical Analysis and Trading Recommendations for March 8, 2012

USD/CAD Intraday Technical Analysis and Trading Recommendations for March 8, 2012

USD/CAD Intraday Technical Analysis and Trading Recommendations for March 8, 2012

Last week the USD/CAD pair showed the massive bearish reaction towards the resistance area 1.0040-1.0060 reflecting in the "Inverted Hammer" daily candlestick.

This resistance area that managed to keep the pair's prices below for over a month despite the several attempts of breakdown, corresponds to the downtrend line and to the upper limit of the transverse channel depicted on the chart.

Unfortunately, today The USD/CAD currency pair is trading again inside the consolidation range 0.9920 - 1.0050 after the last week's successful breakdown of the level 0.9940.

This indicates strength of 0.9850 which pushed the USD/CAD to the upside again towards 1.0050, which has been showing a considerable bearish reaction.

This renders area 0.9920 - 0.9940 is an important intraday support level for the pair that enables to open the Long position. But it is necessary to cinsider that this breakdown is likley to initiate a rapid decline straight to the level 0.9850.

The breakdown of the 0.9920 - 0.9940 levels invalidates the bullish scenario and opens the way to the 0.9850 and 0.9760 levels.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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