USDCAD's bounce extended to 1.0720 only

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

USDCAD's bounce from 1.0556 extended to as high as 1.0720 only. The subsequent pullback suggests lengthier consolidation of uptrend from 1.0224 is underway. More sideways movements are expected in a couple of days. As long as 1.0556 support holds, we’d expected uptrend to resume and one more rise towards 1.0800 is still possible. However, a breakdown below 1.0556 key support will indicate that the rise from 1.0224 has completed at 1.0720 level already, then the following downtrend could take price to 1.0450 area.