USD/CAD: Technical Outlook

USDCAD is rallying towards important resistance levels ahead of FOMC Meeting Minutes. Market players would desperately search for more information regarding tapering of asset purchase by Fed, if indicated, the pair could head for further rise.

USDCAD is currently trading near 1.0430, crossing 23.6% Fibonacci Retracement Level of its uptrend from 0.9814 to 1.0607, testing important resistance zone of 1.0430-1.0440.

A sustained trading above 1.0440 may lead the pair towards 1.0550 with 1.0490 being intermediate resistance.

Given the breakout above 1.0550, the pair is vulnerable to surpass 2011 high of 1.0657.

On the downside, 50-day SMA level near 1.0390 seems a good support level for the pair, breaking which it can test 1.0340 level.

If the pair continues to trade below 1.0340, it can test important support level of 1.0310 (including ascending trend line connecting the lows of 1.0012 – 1.0274 and 38.2% Fibonacci Retracement Level).

Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/