USDCAD remains in downtrend from 1.0055, the price action from 0.9824 is likely consolidation of the downtrend. Key resistance is at 0.9970, as long as this level holds, we’d expect downtrend to resume, and another fall towards 0.9632 is still possible. On the upside, a break above 0.9970 will indicate that the fall from 1.0055 had completed, then further rise to 1.0200-1.0300 area could be seen.
For long term analysis, USDCAD had 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.
