No changed in our view, USDCAD remains in downtrend from 1.0445, the price action from 1.0159 is likely consolidation of the downtrend. Support is at 1.0100, a breakdown below this level could signal resumption of the downtrend. Key resistance is at 1.0445, only break above these levels could trigger another rise towards 1.0656 (Oct 4, 2011 high) previous high.
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.
