03.05.201112:08 Forex Analysis & Reviews: USD/CAD technical analysis for May 3, 2011

Support levels: 0.9400, 0.9353, 0.9300
Resistance levels: 0.9721, 0.9840, 0.9972

In the 4-hour graph the USD/CAD is still declining after a slight rollback. As mentioned before, break of the 0.9450 support level allowed the pair to reach 0.9400. Besides, we can expect a decline to 0.9353, which is 100.0 Fibonacci projection of 1.0285 to 0.9666 up to 0.9972.
If a reversal takes place and the USD/CAD breaks the 0.9721 resistance level, further advance to 0.9972 should be expected. Further break of the 1.0380 level will denote that the rollback from 1.0680 is completed and further growth should be expected.
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 the first target and 0.9500 as the next possible target. However, this downside movement is probably a correction, and a strong support level is located near 0.9056-0.9700.
Thus, if a reversal takes place, the breakout of 1.0851 will prove the downtrend broken through from 1.3063. In this case the USD/CAD is expected to go up to  the resistance level 1.1126 with 1.1866 as the next target.