Technical analysis of the USD/CAD for 25/11/2010

On a 4-hour graph the USD/CAD currency pair is declining again after it bounced off the resistance level 1.0263. As of now, the outlook remains bearish.
As it was mentioned before, the breakout of 1.0385 will lead to the uprising movement with the target to 1.0385. The breakthrough of 1.0385 will denote that a pullback from 1.0680 is over and further growth should be expected.


Support levels: 0.9980, 0.9930, 0.9820
Resistance levels: 1.0263, 1.0385,1.0513

On the other side, if the USD/CAD continues to move downside and break down the level of 0.9980, it will lead to decrease with a target to 0.9930.
In a midterm the consolidation from 1.0855 has not ended yet and another low should be expected. Nevertheless, in case of the reversal the breakthrough of 1.0680 will confirm the end of consolidation and that the downtrend from 1.3063 is breached. In this case it is expected that the USD/CAD moves upside to the Fibonacci correction level 38.2 from 1.3063 to 0.9928 at 1.1126 with the next target to the Fibonacci correction level 61.8 at 1.1866.

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