USDCAD Analysis – January 8, 2011

USDCAD remains in downtrend. Deeper decline is still possible next week and next target would be at 0.9800 area. Resistance is at 1.0035, as long as this level holds, downtrend could be expected to continue. However, a break above 1.0035 will indicate that a cycle bottom has been formed at 0.9888 level on daily chart, then bounce to 1.0100 area could be seen to follow.

For long term analysis, USDCAD’s long term downtrend has resumed. Further fall towards 0.9000 is expected in next several months.

usdcad daily chart