Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.

Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance

Multiple Time-frame Analysis

USD/CAD
USD/CAD

- The USD/CAD has declined to the January low near 0.9837, and cracked below that. There is a bullish divergence spotted in the 4H chart, and as USD/CAD has always been a choppy pair, we can expect a rally in the short-term from this important support.
- The rally will be challenged at the 0.9910 resistance, and a break above that suggests a rally that can retest the channel resistance at the 1.0030-1.0050 area.
- The previous attempt fell short at 0.9960. As you can visually see, this 0.9950 area is the middle of the intermediate-term range, and is a logical return to the means target in the short-term as well.
- On the downside, below the current lows, at 0.9837, we have the 0.9750 lows of 2008 as the next target in the short-term, but perhaps we have a short-term rally to resolve first.
- Only a break above 1.0100 suggests a bullish scenario in the intermediate term. The rallies are in the very short-term, and with a bearish bias, traders will probably be looking to short on rallies, especially with oil prices above $100 a barrel

Will the USD/CAD find a bottom or will high oil prices keep the Loonie fueled.? Will there be a meaningful correction to this early 2011 Sterling strength? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist