USDCAD Analysis – August 4, 2012

USDCAD remains in downtrend from 1.0445, and the fall extends to as low as 0.9979. Further decline is expected next week, and next target would be at 0.9800 area. Resistance is now at the downward trend line on daily chart, only a clear break above the trend line resistance could signal completion of the downtrend.

For long term analysis, USDCAD may be forming a cycle top at 1.0445 on weekly chart. Further decline towards 0.9406 (Jul 26, 2011 low) would likely be seen over the next several months.

usdcad daily chart