The pair is carving out a material base on top of 0,94 by validating a double bottom on the 4-hour chart confirmed by a positive divergence on the MACD.
A break above 0,9530 would confirm the reversal pattern and expose 0,9660 (breakout extension and 50 moving average). In this event, the USD/CAD would probably carve out an important bottom in 2011.
Failure to confirm the bounce and a break back below 0,9450 though would resume the current bearish trend.
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