USDCAD's fall from 1.0779 extends to as low as 1.0579

Franco Shao from ForexCycle.com at 02/11/10

USDCAD’s fall from 1.0779 extends to as low as 1.0579 level, suggesting that a short term cycle top has been formed at 1.0779 on 4-hour chart. Deeper decline to test 1.0545 key support would more likely be seen later today, a breakdown below this level will indicate that the uptrend from 1.0224 has completed at 1.0779 already, then pullback to 1.0450 area could be expected to follow. However, as long as 1.0545 support holds, the price action in the trading range between 1.0545 and 1.0779 is treated as consolidation of uptrend, one more rise to 1.1200is still possible after consolidation.