Being contained by the long term key resistance at 1.3015 (Oct 28, 2008 high), USDCAD pulls back from 1.2973 level. Consolidation in a range between 1.2500 and 1.2973 is expected next week before breaking above 1.3015 resistance. However, below 1.2500 will indicate that the pair is back to range trading between 1.1464 (Nov 5, 2008 low) and 1.3015, and then deeper decline could be seen to 1.2000 zone.
For long term analysis, USDCAD remains in bullish movement, and the price action from 1.3015 is treated as consolidation of long term up trend. Further rise towards 1.4000 to reach the next cycle top on monthly chart is expected.