Support levels: 1.0000, 0.9980, 0.9930
Resistance levels: 1.0212, 1.0290, 1.0380
On a 4-hour graph the USD/CAD is rolling back after it failed to break through the resistance level of 1.0212. However, EMA (55) may support the pair. Earlier the USD/CAD has rebounded from the support level of 1.0000, which is a bottom of a wide trading range.
The uprising movement is confirmed by the fact that on a 4-hour chart the MACD divergence appeared. As it was mentioned before, if the USD/CAD breaks out 1.0259, then this will lead to upside motion with the target to 1.0380. Further the breakout of 1.0380 will denote the end of a rollback and that further advance should be expected. Moreover, the breakthrough of 1.0380 will point to the formation of “Triple Bottom”.
Nevertheless, the breakout of the support level near 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. Nonetheless, in case the reversal takes place, then the breakout will confirm that the consolidation ended and that the downtrend is broken through. In this case it is expected that the USD/CAD will move upside 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.
