FX.co ★ Technical analysis of the USD/CAD for December 17

Support levels: 1.0000, 0.9980, 0.9930
resistance levels: 1.0167, 1.0290, 1.0380

On a 4-hour graph the USD/CAD is traded in the midst of the established range. Recently, the interest to buy deals near 1.0000 is observed, which more or less, is the bottom of a wide trade range. However, it seems that the pair stuck within the narrow ranges, the upper limit of which is decreasing and the parity level serves as a steady support.
On the other hand, on a-hour graph a MACD divergence has formed, which points to the probable uprising movement in the nearest future. If the USD/CAD breaks through the level of 1.0290, then this will lead to upside movement with the target to 1.0380. Further, the breakout of 1.0380 will denote the end of pullback from 1.0680 and that further increase should be expected. Moreover, a breakout of 1.0380 will point to formation of “Triple Bottom”.
Nevertheless, the breakout of support level of 0.9980-1.0000 will target the pair to 0.9930.
In a midterm the currency pair will probably remain within the bounds of its wide range between 1.0000 and 1.0750-1.0850. In case the reversal takes place, then the breakthrough of 1.0680 will confirm the end of the consolidation as well as that the downtrend 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 to the Fibonacci correction level 61.8 at 1.1866.