USD/CAD technical analysis for March 16, 2011

Support levels: 0.9650, 0.9600, 0.9550
Resistance levels: 1.0000, 1.0057, 1.0212



On a 4-hour graph the USD/CAD has made a sharp move to the upside, but could not break the resistance level near 1.0000, to decline further. In general the pair is still rebounding from new multi-year lows last seen November 2007.
As mentioned before, if uptrend continues and the USD/CAD breaks the 1.0000 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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