USDCAD Analysis – April 17, 2010

USDCAD breaks above the upper boundary of the falling price channel on daily chart, suggesting minor consolidation of downtrend from 1.0779 is underway. Further rally towards 1.0302 is expected next week. As long as this level holds, we’d expect downtrend to resume and another fall towards 0.9800 is possible. However, a break above 1.0302 will indicate that the fall from 1.0779 has completed at 0.9952 already.

For long term analysis, USDCAD is in downtrend from 1.3063 (Mar 9, 2009), deeper decline to 0.9500 is possible in next several weeks.