USD/CAD analysis (July 07, 2011)

The pair remains under pressure after the breakout of its daily rising trendline with a next target at 0,95.
However, the market seems to have found some support on top of 0,96 and we might see a continuation of the pullback towards the daily 20 moving average around 0,9730.

USD/CAD: daily chart

Over the middle/long term, we think the USD/CAD might be in the process of building a higher low formation. We need to see the 0,9450 level (multi-year low) holding to confirm this scenario. In this event, we will consider a break above 0,99 to validate a bullish resumption with a continuation above parity.

Inversely a break below 0,9450 would signify further decline on the pair.