USDCAD Analysis – October 16, 2010

USDCAD’s downward move from 1.0672 extended to as low as 0.9979 level. Deeper decline towards 0.9930 previous low is still possible next week. Resistance is at 1.0235, as long as this level holds, downtrend will continue. However, a break above 1.0235 will indicate that the fall from 1.0672 has completed, then the following upward move could bring price back to 1.0600 area.

For long term analysis, USDCAD formed a cycle top at 1.0852 level on weekly chart. Rang trading between 0.9930 and 1.0852 would more likely be seen in next several weeks.

usdcad daily chart