USD/CAD technical analysis for February 16, 2011 2011-02-16

Support levels: 0.9830, 0.9711, 0.9650
Resistance levels: 1.0000, 1.0057, 1.0212


On a 4-hour graph the USD/CAD currency pair is bouncing off after it could not break the 0.9850 level.
In general, technical factors help the USD/CAD pair keep in the trading range after recent rebound off the 0.9850 level.
As mentioned before, if the downside movement remains, break of the 0.9830 support level will target the pair to 0.9711. In this case the viewpoint to the pair will become bearish.
However, if this level is not broken, this might result in advance of the US dollar. If 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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