Support levels: 0.9820, 0.9711, 0.9650
Resistance levels: 0.9980, 1.0212, 1.0290
On a 4-hour graph the USD/CAD is testing the resistance level at 0.9980. Earlier the USD/CAD has bounced off after refreshing a multi-month low. The viewpoint to the pair is still bearish as the downtrend remains. As mentioned before, the breakout of the 0.9890 support level allowed this pair to reach 0.9820 with 0.9711 as the next target.
Moreover, this breakout has provided certain interest to selling and quite significant interest to purchase from corporate market participants.
In the midterm the breakout of the support level at 0.9930 indicated continuing midterm downtrend from 1.3063 (2009 high) with 0.9700 as a target. However, this downside movement is probably a correction, and strong support level is located near 0.9056-0.9700.
