The potential downside movement remains valid as long as the pair is trading below 1.0040 and below 1.0000 area, the psychological resistance. However, the USD/CAD pair has broken above an important daily resistance (a prominent descending top) around 0.9970 level.
The downtrend line established in November 2012 has been broken too establishing a support zone between 0.9910 - 0.9940 which will provide a valid BUY entry on retesting.
The next resistance zone is located around 1.0040 - 1.0050 corresponding to last November's high price 1.0054 which needs to be watched for valid bearish price action.
Resistance: 1.0040, 1.0080, and 1.0110
Support: 0.9940, 0.9910, 0.9880, 0.9855, and 0.9805.
