Being contained by 0.9799 support, USDCAD rebounds from 0.9842, suggesting that a cycle bottom is being formed on daily chart. Further rise would likely be seen next week, and the target would be at the downward trend line. As long as the trend line resistance holds, the rise from 0.9842 is treated as consolidation of the downtrend from 1.0445, anther fall towards 0.9600 could be expected after consolidation, and a breakdown below 0.9842 could signal resumption of the downtrend.
For long term analysis, USDCAD has 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.
