USD-CAD Technical Analysis (24 May 2009)

Recent downturn of USD-CAD is the result of upside major correction which takes place for the 3 months earlier. At this point we witness again that the US Dollar is still not yet recover from weakness against the Canadian Dollar.

Throughout my personal experience this is normal and it shows that USD-CAD recovery is nowhere near. Historical statistic from my observational experience there are two possibilities in this case that the pair might target the middle bollinger band lines of the weekly time frame or worse case back to the bottom.

However since the pair is moving from the top bollinger band line therefore the perfect target with the highest probability should be the middle band line. If it moves directly to the bottom band then it is oversold again. Anyway we do not want to speculate too much in this case because the unexpected can happen anytime. This is proven as it happens time and time again during my years of trading observation and analysis.

Based purely on technical perspective we can expect that the USD-CAD should reverse upside again by the month of June. We will wait and see...