Support levels: 1.0000, 0.9980, 0.9930
Resistance levels: 1.0160, 1.0385, 1.0680
The USD/CAD currency pair is continuing to move downwards. At present, the USD/CAD tests the strong support level near the parity level against the US dollar. As it was mentioned before the breakout of 1.0050 will target the pair at 0.9980. However, if the USD/CAD does not break through the parity level versus the American dollar, then a rebound to up is expected.
If the USD/CAD reverse and breaches the resistance level of 1.0160 and EMA (55), then the short term viewpoint on the currency pair will be neutral. Further, the breakthrough of 1.0385 will denote that the pullback from 1.0680 is over and the increase is expectable. In a midterm outlook the consolidation from 1.0855 has not been finished yet and another should be awaited. Nevertheless, in case if the reversal the breakout of 1.0680 will confirm the end of the consolidation as well as that the downtrend from 1.3063 is breached. In this case it is expected that the USD/CAD will move upwards to the Fibonacci correction level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target at Fibonacci correction level 61.8 at 1.1866.