USD/CAD technical analysis for February 1, 2011 2011-02-01

Support levels: 0.9910, 0.9820, 0.9711
Resistance levels: 1.0026, 1.0050, 1.0212


On a 4-hour graph the USD/CAD currency pair has made a sharp rebound up, but could not close above the resistance level 1.0026. The viewpoint to the pair is still neutral.
As mentioned before, if the USD/CAD breaks the 1.0026 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.
However, if a reversal takes place break of the 0.9820 support level will target the pair to 0.9711.
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.

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