USDCAD Analysis – October 13, 2012

USDCAD may be forming a cycle top at 0.9884 on daily chart. Another fall to test 0.9632 support could be expected next week, a breakdown below this level will indicate that the downtrend from 1.0445 has resumed, then further decline to 0.9500 area could be seen. Resistance is at 0.9884, only break above this level will indicate that lengthier consolidation of the downtrend is underway.

For long term analysis, USDCAD had formed 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