USD/CAD New Upwards Movement , March 08, 2011 (Daily Strategy)

USD/CAD

The support for the Canadian dollar has been stronger for now, and the pair dived in the last two week by nearly 300 points without any correction.

On the technical level I can identify great potential for the beginning of a technical correction, this after the pair has failed to breach the major support level of 0.9710 after a prolonged struggle.

A new upwards movement can be expected to raise the pair back to the downwards trend line around 0.9830. Furthermore, a breach of the trend line will form a major indication of continued northbound movement towards the meaningful resistance level of 1.0109 Canadian dollars for one United States dollar.

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