Technical analysis of USD/CAD for 02/08/2010

Support levels: 1.0251, 1.0141, 1.0013.
Resistance levels: 1.0390, 1.0500, 1.0550.
USD/CAD is demonstrating a downward tendency. At the moment, the view of the pair is neutral as long as the support level of 1.0251 is not broken.
At the successful breach of this mark, a drop to 1.0141 is expected. In case of reversal of USD/CAD, the breakthrough of EMA (55) which is resistance and 1.0390 will make the intraday view neutral.
As it is seen on a 4-hour and daily charts, the USD/CAD movement is developing in the form of triangle. In case of breakout of the upper limit of this figure, it will mean that consolidation is finished, mid-term bottom is at 0.9930 and an upward motion to 1.0858 should be expected. On the other hand, in case of reversal the breach of the support level of 1.0141 and the lower limit of the triangle will cause a decline with the target at 0.9930.
In mid-term outlook, apparently USD/CAD formed a bottom at 0.9930. Also, considering bullish divergence at daily and weekly MACD, the view of the pair remains bullish amid the reversal of downward trend from 1.3063. It is expected that USD/CAD will go up to Fibonacci correctional level of 38.2 from 1.3063 to 0.9929 on 1.1126 with the next target at Fibonacci correctional level of 61.8 on 1.1866.

More analysis at