FX.co ★ The technical analysis of the USD/CAD for October 18, 2010

Support levels: 0.9980, 0.9930, 0.9821
Resistance levels: 1.0190, 1.0385, 1.0511

On a 4-hour chart, the USD/CAD tests the resistance level of 1.0190. A breakthrough of 1.0385 will denote that the rollback to 1.0680 is over and further upward movement should be expected. The divergence of the MACD and RSI confirms this point of view.
If the USD/CAD reverses and breaches the support level of 0.9980, then the downside movement to 0.9930 is expected with the next target to 0.9821.
In a midterm, the consolidation from 1.0855 is not completed and one more low is possible. Nonetheless, if the reversal takes place, then the breakthrough of 1.0680 will confirm that the consolidation is over and that the downtrend from 1.3063 is breached. In this case, it is expected that the USD/CAD will move to Fibonacci correctional level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target to Fibonacci correctional level 61.8 at 1.1866.