USDCAD broke below rising price channel on 4−hour chart

Franco Shao from ForexCycle.com at 01/29/10

 

USDCAD broke below the rising price channel on 4-hour chart and formed a short term cycle top at 1.0691 level. Now the price action from 1.0691 is treated as consolidation of uptrend. As long as 1.0691 resistance holds, sideways movement is expected to continue, however, a clear break above 1.0691 level will suggest that a cycle bottom has been formed at 1.0556 level and the uptrend from 1.0224 has resumed, then next target would be at 1.0800 area.