Being contained by the resistance of the falling trend line from 1.2504 to 1.1813, USDCAD drops from 1.1289 level, suggesting that a cycle top is being formed on daily chart. Further fall is expected to re-test 1.0784 previous low support, a break below this level will confirm the cycle top, and then deeper decline could be seen to 1.0400 zone.
For long term analysis, USDCAD has formed a cycle top at 1.3063 level on weekly and monthly chart. The pair is now in long term bearish movement. Further fall towards 1.0000 is expected in next several weeks.
