USDCAD Analysis – May 1, 2010

USDCAD traded in a range between 0.9930 and 1.0302 for several weeks. As long as 1.0302 resistance holds, the price action in the trading range is treated as consolidation of downtrend, and another fall to 0.9500 is still possible. However, a break above 1.0302 will indicate that the downtrend from 1.0779 has completed at 0.9930 already, then the follow uptrend could bring price back to 1.0500 area.

For long term analysis, USDCAD is in downtrend from 1.3063 (Mar 9, 2009), deeper decline to 0.9500 is possible in next several weeks.

usdcad daily chart