FX.co ★ Technical analysis of USD/CAD for 09/06/2010

Support levels: 1.0339, 1.0251, 1.0103.
Resistance levels: 1.0681, 1.0725, 1.0858.

The USD/CAD currency pair moves further in downward direction from 1.0681, it points out the formation of a short-term top at this mark. However, the viewpoint on the pair remains bullish, because earlier the resistance level of 1.0565 has been steadily broken and it means that the pullback from 1.0858 is finished and an upward movement to the next resistance level of 1.0725 with the next target at 1.0858 should be expected.
Earlier, in the area between the correction level Fibonacci of 61.8 and the ascendant line of the trend the USD/CAD pair had met a strong support after that a sharp growth took place. Therefore, if USD/CAD continues to fall, in the area above 1.0339 an upward rollback is expected. However, if the pair break out the support level of 1.0339, it will lead to a drop to 1.0251.
In mid-term outlook, the breach of the major resistance level of 1.0779 means the downward trend reversal from 1.3063 to 0.9930. it is awaited that now USD/CAD will move upwards to the correction level Fibonacci of 61.8 from 1.3063 to 0.9930 on 1.1867.
Moreover, the mid-term view of the USD/CAD currency pair remains bullish and it is assumed that the pair will go up to 100% projection from 0.9930 on 1.0741 at the mar of 1.0924.