USDCAD Analysis – May 16, 2009

Being supported by 1.1464 previous low, USDCAD rebounds from 1.1474 level. Further rise towards the falling trend line on daily chart is possible next week. However, the rebound is more likely consolidation of the downtrend from 1.3063. As long as the trend line resistance holds, we’d expect downtrend to resume and pullback to test 1.1464 key support is still possible.

For long term analysis, USDCAD is forming a cycle top at 1.3063 level on monthly chart. Key support is at 1.1464, below this level will confirm the cycle top.

usdcad daily chart