Support levels: 1.0070, 1.0000, 0.9980
Resistance levels: 1.0167, 1.0290, 1.0380
On a 4-hour graph the USD/CAD is continuing to trade sideways. Recently, the interest in the purchases near 1.0070 is observed, which is considered as a bottom of a wide trade range. However, it seems that the pair stuck within narrow ranges, the upper limit of which is declining and the parity level acts as a strong support.
As it was mentioned before, if the USD/CAD breaks out the 1.0290 level, then this will lead to uprising movement with the target to 1.0380. Further the breakthrough of 1.0380 will denote the end of the pullback from 1.0680 and that the advance should be expected. Moreover, the breakout of 1.0380 will point to formation of “Triple Bottom”.
Nevertheless, the breakthrough of support level of 0.9980-1.0000 will allow the pair to reach 0.9930. In a midterm, the currency pair will, probably, remain within the limits of its wide range between 1.0000 and 1.0750-1.0850. Nonetheless, in case of the reversal the breakout of 1.0680 will confirm that the consolidation ended and that the downtrend from 1.3063 is breached. In this case it is expected that the USD/CAD will rise to the Fibonacci correction level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target to the Fibonacci correction level 61.8 at 1.1866.