USD/CAD technical analysis for February 2, 2011 2011-02-02

Support levels: 0.9820, 0.9711, 0.9650
Resistance levels: 1.0057, 1.0050, 1.0212



On a 4-hour graph the USD/CAD currency pair has successfully broken the support level 0.9910, to rebound further. At the moment the viewpoint to the pair is still neutral. As noted earlier, break of the 0.9820 support level will target the pair to 0.9711.
However, if a reversal takes place and the USD/CAD breaks the 1.0057 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.

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