USDCAD Analysis – September 12, 2009

No changed in our view, USDCAD remains in range trading between 1.0632 and 1.1124. Another rise towards the upper border of the price channel to reach next cycle top on daily chart is still in favor, 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 could be seen 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