Support levels: 1.0101, 1.0050. 0.9930
Resistance levels: 1.0385, 1.0511,1.0569
On a 4-hour chart, the USD/CAD has successfully breached the lower limit of the range 1.0180-1.0385. Presently, the viewpoint on the pair is bearish. The breakthrough of the support level of 1.0178 denotes that the downward movement to 1.0680 continues and the decline to 1.0101 with the neat target to 0.9930 should be expected.
However, if the currency pair reverses and increases to the mid of the trading range 1.0180-1.0385 it will denote the bearish trap. The breach of the resistance level of 1.0385 will confirm it. In this case, we expect the uptrend to 1.0511.
In a midterm, the USD/CAD continues to move up after it formed a bottom at 0.9930. The breakthrough of 1.0680 will confirm the uprising trend and that the downward trend with 1.3063 is breached. In this case, it is expected that the USD/CAD will rise to Fibonacci correctional level of 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target to Fibonacci correctional level of 61.8 at 1.1866.
