USD/CAD analysis (July 05 2011)

The pair is back under pressure after its break below its rising trendline. Next target is given at 0,95 (weekly bollinger band) with an extension towards multi-year low at 0,9450.


USD/CAD: Daily chart

The market might be carving out a mterial base on top of 0,95 considering a bullish resumption on the US Dollar. In this event, we will consider the 0,97 level as the first barrier to the upside.
In any case, we will need to see a break above 0,99 to confirm a bullish potential.

Inversely, a break below 0,9450 would accelerate the decline.