USDCAD Analysis – June 26, 2010

USDCAD has reached the falling trend line from 1.0852 to 1.0678. A clear break above the trend line resistance will indicate that the fall from 1.0852 has completed at 1.0138 already, then further rally could be seen to 1.0600-1.0700 area. However, as long as the trend line resistance holds, the bounce from 1.0138 is treated as consolidation of downtrend, one more fall towards 1.0100 is still possible.

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