USDCAD broke above downward trend line

USDCAD broke above the downward trend line on 4-hour chart, suggesting that a cycle bottom is being formed at 0.9926. Range trading between 0.9926 and 1.0050 would likely be seen in a couple of days. As long as 1.0050 resistance holds, the bounce is treated as consolidation of downtrend from 1.0318, and one more fall towards 0.9800 is still possible after consolidation. On the upside, a break above 1.0050 will signal completion of the downtrend, then further rally could be seen to 1.0100-1.0150 area.

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