USDCAD: Although USDCAD is now vulnerable to the downside on consolidation, as long as it continues to hold above the 0.9777 level, our bias points to the upside.The caveat is that a loss of that level will call for a deeper correction towards its July 18'2011 high followed by the 0.9404 level with a violation of there turning threat towards the 0.9300 level. Its daily RSI is bearish and pointing lower supporting this view. However, above the 0.9777 level will create scope for a move higher towards the 1.0008 level, its Aug'2011 high. A clearance of this level will set the stage for further strength towards the 1.0056 level, its Jan'2011 high. Further out, on price extension we may see USDCAD targeting the 1.0207 level, its Dec 20'2011 high.

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This article was originally published on Benzinga, and is republished here with permission.

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