USDCAD breaks above falling trend line

Franco Shao from ForexCycle.com at 01/20/10

 

USDCAD breaks above the falling trend line from 1.0745 to 1.0413, suggesting lengthier consolidation of downtrend is underway. Bounce to test 1.0413 resistance is now in favor. As long as this level holds, we’d expect downtrend to resume and one more fall towards 1.0000 is still possible. However, a break above 1.0413 key resistance will indicate that the fall from 1.0745 has completed at 1.0224 level already, then the following uptrend could take price back to 1.0600 area.