USDCAD Analysis – April 21, 2013

USDCAD broke above the downward trend line on daily chart, suggesting that the downward movement from 1.0341 had completed at 1.0083 already. Further rise to test 1.0341 resistance is possible, a break above this level will indicate that the uptrend from 0.9632 (Sep 14, 2012 low) has resumed, then another rise towards 1.0500 could be seen. On the downside, as long as 1.0341 resistance holds, the rise from 1.0083 would possibly be correction of the downtrend from 1.0341, one more fall towards 1.0000 is still possible after correction.

For long term analysis, USDCAD had formed a cycle top at 1.0341 on weekly chart. Further decline towards 0.9500 could be expected over the next sever weeks.

usdcad daily chart