The Canadian Dollar has continued to fall against the U.S. dollar, so how long will this last? I feel we are close to our short term turning point.

The Canadian dollar resumed its aggressive slide last week, as USD/CAD plunged over 300 points. The Forex pair closed at 1.4169. So far the upcoming week has been aggressive so far, as far as news is concerned there are only  three events on the schedule. Here is an outlook on the USD/CAD.

The Canadian dollar has looked interesting, posting three sharp weekly losses in the past five weeks. Canadian PMI dropped in December to 49.9 points, compared to 63.6 points a month earlier. Employment Change rebounded with a strong gain in December, but this failed to stem the CAD losses last week. In the US, the N.F.P. report was outstanding, bolstering the greenback.

Updates:

USD/CAD daily chart with support and resistance lines on it.

USD/CAD Technical Analysis

USD/CAD opened last the week at 1.3872 and dropped to a low of 1.3848. It was all up from there, as the pair climbed to a high of 1.4177, breaking above resistance at 1.4157. USD/CAD closed the week at 1.4169.

With USD/CAD posting sharp gains last week, we start at higher levels:

We begin with resistance at 1.4480, which was an important cushion in April 2000.

1.4315 is the next line of resistance.

at 1.4157 the pair surged and is now a  support level.

1.4019 has also switched to support.

The round number of 1.39 is support.

1.3757 is the final support level for now.

I am bearish on USD/CAD, as of today.

With Crude reaching a major level today at 30.00, I feel this is the right time to think about shorting the usd/cad.