USDCAD Analysis – May 30, 2009

No changed in our view, USDCAD remains in downtrend from 1.3063 and the fall extends further to as low as 1.0891 level. More quick moves is still possible next week and the next target would be at 0.0500 zone. Near term resistance is at 1.1260, as long as this level holds, we’d expect the downtrend to continue.

For long term analysis, USDCAD has formed a cycle top at 1.3063 level on weekly and monthly chart. The pair is now in long term bearish movement. Further fall towards 1.0000 is expected in next several weeks.

usdcad daily chart