Support levels: 1.0470, 1.0320, 1.0141.
Resistance levels: 1.0681, 1.0858, 1.0990.
The USD/CAD currency pair had not managed to break through the resistance level of 1.0681, after that rollback took place. However, the view of the pair remains bullish and as it is expected the rising motion will keep on. The breakout of the resistance level of 1.0681 will open the way to 1.0858 with the next target at 1.0990.
The fact that the currency pair has breached the resistance level of 1.0473 earlier speaks for that the ascendant movement from 1.0141 is going on.
It should be mentioned that on a day chart there is a “flag” on upward motion, which is only pause before further growth.
Nevertheless, if USD/CAD reverses and breaks the support level of 1.0470, small consolidation should be expected. However, if the downward motion continues and the support level of 1.0320 is breached, a decline to 1.0141 with the next target at 0.9930 should be expected.
In mid-term outlook, considering bullish divergence of daily and weekly MACD, possibly, the view of the pair remains bullish amid the reversal of downward trend from 1.3063. It is expected USD/CAD will go up to Fibonacci correctional level of 38.2 from 1.3063 to 0.9929 on 1.1126 with next target at Fibonacci correctional level of 61.8 on 1.1866.