USDCAD Analysis – May 31, 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). Initial bias is on down side and deeper decline is expected to retest 0.9709 level, and break below this level to reach the next cycle bottom on daily chart is possible.

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