USDCAD remains in downtrend from 1.0445, the rebound from 0.9842 is treated as consolidation of the downtrend. Resistance is located at the downtrend line on daily chart, as long as the trend line resistance holds, the downtrend could be expected to resume, and further decline towards 0.9600 is still possible. On the upside, a clear break above the trend line will indicate that the downtrend from 1.0445 has completed, then further rally to 1.0200 area could be seen.
For long term analysis, USDCAD has formed 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.
