USD/CAD technical analysis for February 23, 2011

Support levels: 0.9820, 0.9780, 0.9711
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 breal the support level 0.9820-0.9830. Nevertheless, the currency pair will probably find a resistance level near parity.
As mentioned before, break of this support level might provoke the USD/CAD to test the support level 0.9780 with further target at 0.9711.
However, if the support level 0.9930 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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