Forex - USD/CAD Technical Analysis (US Dollar / Canadian Dollar)

The pair continues to move below the lower band of its falling wedge (black lines). A test of the annual lows at 0.98, reached on May 1st 2012, is expected during the next days. In h1, this scenario is reinforced by a bearish channel (purple lines).

We stay bearish as far as 0.9960 is resistance. In case of breakout of this level, we will be neutral between 0.9960 and 1.0. The breakout of 1.0 will give a buy signal.

Analysis published by Bruno, the 08/21/2012 at 9h00 GMT+2

Updated the 09/04 - During the last two weeks, the pair USD/CAD is moving between the support at 0.9852 and the resistance at 0.9950. Currently, the price is testing for the fourth time the support at 0.9852 and so, a breakout of this level is expected.

In h1, the pair is moving into a new bearish channel (purple lines). We continue to advise short positions as far as 0.9950 is resistance. The breakout of 0.9852 will give a new sell signal and will allow a test of the annual lows at 0.98 of May 1st.

In case of return above 0.9950, we will be neutral between this level and 1.0.