USDCAD Analysis – Aug 30, 2008

USDCAD traded in range between 1.0410 and 1.0727. As long as 1.0727 resistance holds, lengthier consolidation would take price back towards 1.0260 – 1.0350 area. Key resistance is at 1.0727, rise above this level could signal resumption of up trend, and then further rally towards 1.1500 level is expected to follow.

For long term analysis, USDCAD might be forming a cycle top at 1.0727 on weekly chart. Long term key support is at 0.9818, a break below this level will signal further decline towards 0.9056 (Nov 2007 low).

usdcad daily chart