USDCAD Analysis – June 10, 2009

Being contained by the resistance of the falling trend line from 1.2504 to 1.1813, USDCAD drops from 1.1289 level, suggesting that a cycle top is being formed on daily chart. Further fall is expected to re-test 1.0784 previous low support, a break below this level will confirm the cycle top, and then deeper decline could be seen to 1.0400 zone.

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