FX.co ★ The technical analysis of the USD/CAD for November 05, 2010

Support levels: 1.0000, 0.9980, 0.9930
resistance levels: 1.0160, 1.0385, 1.0680

The USD/CAD has successfully broken through the support level near 1.0050-1.0075. Now the further decline to 0.9980 should be expected. Nonetheless, if the currency pair could not break out the parity level versus the US dollar, the rebound to upwards is forecasted. If the USD/CAD breaks through the resistance level of 1.0160 and EMA (55), then the short-term outlook will be neutral. The breakout of 1.0385 will denote the end of the pullback from 1.0680 and in this case the advance is expectable. 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 one more low is expected. Nevertheless, in case of the reversal the breakthrough of 1.0680 will confirm the end of the consolidation and that the downside trend from 1.3063 is breached. In this case it is expected 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.
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