FX.co ★ The technical analysis of USD/CAD for 19/05/2010

At present, the USD/CAD currency pair is testing the resistance level at 1.0450бб its break through will direct the pair to 1.0570.
If USD/CAD breaks through this resistance level then the uptrend to 1.074 should be expected. In addition, a break through of 1.0450 will mean that a setback to 1.0105 is extending. In favor of the upward movement comes the MACD location above the signal line and EMA (55) support which is now at 1.0284.
In case the currency pair is not able to overcome the level of 1.0450, then we should wait for lowering to 1.0248 with further target at 1.0105.
As it was declared before, USD/CAD fall from 1.0741was stopped by the support level around 1.0105. A failed effort of breaking through this support level led to the currency pair growth. Moreover, the fact that USD/CAD has successfully exceeded the resistance level at 1.0288 signals about that the downtrend from 1.0741 has finished.

In a mid term, the Fibonacci correction level 61.8 from 1.0779 to 0.9930 by 1.0452 testifies about the mid term bottom formed at 0.9930. A break through of an important resistance level 1.0779 will lead to the pair’s advancing to Fibonacci correction level 38.2 from 1.3063 to 0.9930 by 1.1126. In favor of the upside trend comes MACD fixation above the signal line and EMA (55) support. However, if the currency pair breaks through the support level at 0.9930 it will mean that a decrease to 1.3063 continued and further downtrend towards 0.9820 is likely to take place.