USDCAD Analysis – May 21, 2008

No changed in our view, USDCAD is forming a sideways consolidation in a range between 0.9709 (Feb 28 low) and 1.0378 (Jan 22 high). Pullback to retest 0.9709 support is expected in the next few days. Key resistance is now located at 1.0326, only break of this level will signal the resumption of the long term up trend.

For long term analysis, USDCAD formed a long term cycle top at 1.0378 on weekly chart. Pullback to 0.9650 area to reach the next long term cycle bottom is expected.

usdcad daily chart