Support levels: 1.0000, 0.9980, 0.9930
Resistance levels: 1.0167, 1.0290, 1.0380
On a 4-hour graph the USD/CAD rebounded after it did not manage to break through the support level near 0.9980-1.0000. The levels near the parity served as a good support this year, last month the USD/CAD could not break out the parity level. If the USD/CAD breaks through the 1.0290 level, then this will lead to uprising movement with the target to 1.0380. Further the breakout of 1.0380 will denote that the pullback from 1.0680 ended and further advance should be expected. Moreover, the breaching of 1.0380 will point to the formation of “Triple Button”.
Nevertheless, the breakthrough of support level 0.9980-1.0000 will allow the pair to reach 0.9930. In a midterm the currency pair will probably remain within the limits of its wide range between 1.0000 and 1.0750-1.0850. However, if the reversal takes place then the breakout of 1.0680 will confirm the end of the consolidation and downtrend from 1.3063 is broken through. In this case it is expected that the USD/CAD will rise to the Fibonacci correction level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target to the Fibonacci correction level 61.8 at 1.1866.
