USDCAD Analysis – August 22, 2009

USDCAD formed a cycle bottom at 1.0632 level on daily chart and is now in uptrend. The fall from 1.1124 is treated as consolidation of uptrend. As long as 1.0632 support holds, we’d expect uptrend to resume and one more rise to 1.1400-1.1500 area is still possible. However, below 1.0632 will suggest that the downtrend from 1.1723 has resumed, then deeper decline could be seen to 1.0200 zone.

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