USDCAD Analysis – September 5, 2009

USDCAD consolidated in a range between 1.0632 and 1.1124. Another rise towards the upper border of the price channel to reach next cycle top on daily chart would more likely be seen, and a break above 1.1124 will confirm such case. However, below 1.0632 will indicate that the downtrend from 1.1723 has resumed, then deeper decline to 1.0200 zone is expected to follow.

For long term analysis, USDCAD is long term downtrend from 1.3063 and the price action from 1.0784 is treated as consolidation of downtrend. Deeper decline is now in favor, and next target would be at 1.0000 zone.

usdcad daily chart