USDCAD Analysis – August 8, 2009

USDCAD remains in downtrend from 1.1723 and deeper decline is possible to 1.0400-1.0500 area. Key resistance is now at 1.0933, a break above this level will indicate that a cycle bottom has been formed at 1.0632 on daily chart and the downtrend from 1.1723 has completed, then the following rebound could take price to 1.1550-1.1600 area.

For long term analysis, USDCAD breaks below 1.0784, suggesting the long term downtrend from 1.3063 has resumed. Deeper decline is now in favor, and next target would be at 1.0000 zone.

usdcad daily chart