FX.co ★ The technical analysis of the USD/CAD for November 04, 2010

Support levels: 1.0050, 0.9980, 0.9930
Resistance levels: 1.0160, 1.0385, 1.0680

The USD/CAD currency pair has again targeted at the parity level against the US dollar. A breakout of the support level near 1.0050-1.0075 will lead to the further decline to 0.9980. Nonetheless, presently the strong volatility is observed. If this level withstands, then the rebound to upwards is expectable.
If the USD/CAD breaks through the resistance level of 1.0160, then the short-term viewpoint on the currency pair will become neutral. The breach of 1.0385 will denote the end of the pullback from 1.0680 and further growth should be awaited. The divergence on the MACD and RSI at 4-hour graph comes in favor of this fact.
In a midterm the consolidation from 1.0855 has not finished yet and another low should be expected. Nevertheless, in case of the reversal then the breakout of 1.0680 will confirm the end of the consolidation and that the downside trend from 1.3063 is broken through. In this case it is forecasted that the USD/CAD will move upside to the Fibonacci correction level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target at the Fibonacci correction level 61.8 at 1.1866.