USD/CAD analysis (July 01st 2011)

The USD/CAD is back under pressure after the break of its rising trendline (see chart below).

We expect a continuation of the move to the downside with next target at 0,95 corresponding to the daily lower bollinger band.

USD/CAD: Daily chart

The pair remains in a long term bearish trend which has been confirmed by the latest price actions. We might see a test of multi-year low from June at 0,9440 over the coming sessions.

We think though that the pair might be in the process of building some form of base on top of this low. We will see how things develop and adjust our analyis accordingly but for the time being the pressure is on the downside.