FX.co ★ Technical analysis of USD/CAD for 04/06/2010

Support levels: 1.0339, 1.0251, 1.0103.
Resistance levels: 1.0468, 1.0565, 1.0636.
The USD/CAD currency pair has been rolling back from 1.0858. Earlier, USD/CAD bounced back from 1.0339 to 1.0468.
View of the currency pair remains bearish as the fact that the pair has successfully broken out the support level of 1.0539 and EMA (55) means that USD/CAD target is set to 1.0251.
In addition, the USD/CAD’s breakout of the support level of 1.0650 speaks for that a short-term top has formed at 1.0858.
It is expected that in the area between Fibonacci correction level of 61.8 and the rising line of the trend there is a strong support, where a rebound is awaited.
If the resistance level of 1.0565 is broken out, it will mean that the rollback from 1.0858 is finished and an upward movement to the next resistance level of 1.0725 should be expected.
In mid-term outlook, the breach of the main resistance level of 1.0779 means a reversal of the downtrend from 1.3063 to 0.9930. As it is forecasted, now USD/CAD will move upwards to Fibonacci correctional level of 61.8 from 1.3063 to 0.9930 on 1.1867.