FX.co ★ USD/CAD Technical Analysis for August 23, 2011

Support: 0.9742, 0.9635, 0.9568
Resistance: 1.0000, 1.0050, 1.0209
On a 4-hour chart USD/CAD has probably targeted again to the parity rate after a considerably long rebound. The situation remains bullish as the upmove goes on.
As stated, the divergence of the MACD and RSI show the ascending trend, which has been already confirmed. Thus a successful testing of the resistance rate near 0.9780-0.9800 pointed to the formation of a midterm low at 0.9406 and opened the way to 1.0000. Breaking through 1.0000 will cause an increasing motion with the target at 1.0209.
In case there is a retracement of the support level at 0.9742, a slight consolidation will occur. Further passing the main support level at 0.9400 will open the way to new year minimums. There can also be a lowering with the purpose to 0.9172, which is a level of Fibonacci projection 61.8 from 1.0670 at 0.9445 to 0.9972.
In a short-term prospect puncturing the support rate at 0.9930 demonstrated the continuation of a midterm lowering tendency from 1.3063 (high of 2009) with the target at 0.9400. Although this decline may appear a correction and near 0.9056-0.9700 there is a strong support rate.
If we see a rebound, breaking through 1.0851 will confirm the puncture of the ascending trend from 1.3063. in this case it is expected that USD/CAD will make an uprise to the support level at 1.1126 with the next target at 1.1866.