USDCAD Analysis – July 19, 2009

After breaking below the lower border of the price channel, USDCAD drops sharply to as low as 1.1116 level. Further fall towards 1.0784 previous low is expected next week. Near term resistance is at 1.1260 followed by 1.1350, as long as these levels hold, we’d expect the downtrend from 1.1723 to continue.

For long term analysis, USDCAD might be forming a cycle bottom at 1.0784 level on weekly chart. Rebound towards 1.2000-1.2500 area is possible in next several weeks.

usdcad daily chart