USD/CAD

U.S. dollar gained strength against major currencies in the last quarter of 2011. Will the strong performance of U.S. dollar continue in 2012? USD/CAD chart warns of a possible breakout in the beginning of 2012. 3 month-long symmetrical triangle shows consolidation of the currency pair but suggests a breakout is imminent. Given that the trend prior to the symmetrical triangle was upwards we can expect another strong trend on the upside. However, it is always better to wait for a confirmation. 1.04 levels is the strong resistance for the currency pair. If USD/CAD breaks above 1.04 level we should expect continued strength for the U.S. dollar. 1.003 level is the 200 day moving average and should act as strong intermediate/long-term support. A break below 1.003 level should reverse the bullish outlook for U.S. dollar and set the stage for further weakness in U.S. dollar.