On a 4-hour graph the USD/CAD slipped to the mark of 1.0000, and then made a rebound. Recently, the interest to buy deals near 1.0000 is observed, which more or less, is the bottom of wide trade range.
However, it seems that the pair stuck within the narrow ranges, the upper limit of which is descending and the parity level serves as the steady support.
On the other hand, on a 4-hour graph a MACD divergence has formed, which indicates probable advance in the nearest future. As it was mentioned before, in case the US/CAD breaks through the 1.290 level this will lead to upside movement with the target to 1.0380. A breakout of 1.0380 will denote the end of the pullback from 1.0680 and that further advance should be expected. Moreover, the breakthrough of 1.0380 will point to the formation of “Triple Bottom”.
Support levels: 1.000, 0.9980, 0.9930
Resistance levels: 1.0167, 1.0290, 1.0380
Nevertheless, the breakout of support level near 0.9980-1.0000 will target the pair to 0.9930.
In a midterm the currency pair will probably remain within the bounds of its wide range between 1.0000 and 1.0750-1.0850. In case the reversal takes place, then the breakthrough of 1.0680 will confirm the end of the consolidation as well as that the downtrend from 1.3063 is breached. In this case it is expected that the USD/CAD will move upside to the Fibonacci correction level 38.2 from 1.3063 to 0.9929 at 1.1126 with the next target to the Fibonacci correction level 61.8 at 1.1866.
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