FX.co ★ USD/CAD technical analysis for April 4, 2011

Support levels: 0.9600, 0.9550, 0.9500
Resistance levels: 0.9750, 0.9840, 1.0000

In the 4-hour graph the USD/CAD is still refreshing multi-year highs. The viewpoint at the pair remains bearish.
As mentioned before, break of the 0.9810 support level will initiate downside movement to 0.9650 with 0.9600 as further target. Nevertheless, the pair might face high demand near the 0.9589 level, which is a Fibonacci projection of 1.0285 to 0.9666 up to 0.9972.
If a reversal takes place and the USD/CAD breaks the 1.0000 resistance level, further advance to 1.0212 should be expected. Further break of the 1.0380 level will denote that the rollback from 1.0680 is completed and further growth should be expected.
In the midterm the breakout of the support level at 0.9930 indicated continuing midterm downtrend from 1.3063 (2009 high) with 0.9700 as a target. However, this downside movement is probably a correction, and a strong support level is located near 0.9056-0.9700.
Thus, if a reversal takes place, the breakout of 1.0851 will prove the downtrend broken through from 1.3063. In this case the USD/CAD is expected to go up to the resistance level 1.1126 with 1.1866 as the next target.