FX.co ★ Technical analysis of the USD/CAD for December 02, 2010

Support levels: 1.0079, 0.9980, 0.9930
Resistance levels: 1.0292, 1.0380, 1.0513

On a 4-hour graph the USD/CAD pair is rolling back after it broken through the resistance level of 1.0266. The next key resistance level is on the 200 Day moving average of 1.0292. The technical support is placed at 1.0079. At present the viewpoint is bullish. As it was mentioned before a breakout of 1.0266 will lead to uprising movement with the target to 1.0380. The breakthrough of 1.0380 will denote that the rollback from 1.0680 is over and further advance is expectable.
On the other hand if the USD/CAD continues to move downwards and breaches the 1.0079 level, then this will result in the decline with the target to 0.9980, where the rebound to upside is expected. This year the levels near parity were a good support, last month the USD/CAD failed to breach the parity level.
In a midterm the pair will probably remain within the bounds of its wide range of 1.000 and 1.0750-1.0850. Nevertheless, in case of the reversal the breakthrough of 1.0680 will confirm the end of the consolidation and that the downtrend from 1.3063 is breached. In this case it is expected that the USD/CAD will rise to the Fibonacci correction level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target to the Fibonacci correction level 61.8 at 1.1866.