USDCAD Analysis – June 6, 2009

USDCAD stays below the falling trend line from 1.2504 to 1.1813 and remains in downtrend from 1.3063. The rebound from 1.0784 is more likely consolidation of downtrend. However, above the trend line resistance will suggest that a cycle bottom is being formed at 1.0784 level and then lengthier consolidation could be seen to follow.

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