Bulls have managed to hit fresh highs (around 1.1220) since 2009.

Temporarily, USD failed to keep its gains against CAD, and the USD/CAD pair was pushed to the downside, thus indicating weakness of the ongoing bullish momentum. This is manifested in the recent weekly candlestick closures depicted in the chart.

The prominent resistance zone is located around 1.1230-1.1250 corresponding to 50% Fibonacci level of the bearish movement that had been extending since March 2009 and ended in July 2011.

The pair has a significant support zone between 1.0700 and 1.0730 representing the upper limit of consolidation range that got broken last month.

Re-testing of this zone would probably provide a valid BUY entry for the mid-term.