FX.co ★ Technical analysis of the USD/CAD currency pair for 31/05/2010

Support levels: 1.0448, 1.0388, 1.0251.
Resistance levels: 1.0636, 1.0725, 1.0858.
Last week, the USD/CAD currency pair rose to 1.0858, but fell to 1.0448 after. As it was mentioned before, the fact that the pair successfully broke out the support level of 1.0539 and EMA (55) meant that short-term outlook became bearish. The breach of this support level directed the pair to 1.0251.
Besides, the USD/CAD breakthrough of the support level of 1.0650 speaks for that the short-term top has formed at 1.0858. MACD divergence at 4-hour timeframe indicates a downward movement.
In mid-term outlook, the breakout of the main resistance level of 1.0779 testifies to the reversal of the descendant trend from 1.3063 to 0.9930. It is expected that the USD/CAD will move upwards to the correctional level Fibonacci of 61.8 from 1.3063 to 0.9930 on 1.1867.