USDCAD Analysis – July 7, 2012

USDCAD remains in downtrend from 1.0445, the price action from 1.0159 is likely consolidation of the downtrend. Bounce to 1.0300 area to complete the consolidation would likely be seen next week. Key resistance is at 1.0445, only break above these levels could trigger another rise towards 1.0656 (Oct 4, 2011 high) previous high.

For long term analysis, USDCAD may be forming a cycle top at 1.0445 on weekly chart. Further decline towards 0.9406 (Jul 26, 2011 low) would likely be seen over the next several months.

usdcad daily chart