The pair continues to consolidate as it looks for a directional move possibly to the upside. As long as the 0.9907 level and the 0.9836 levels hold as supports, we believe the pair should recapture the 1.0027 level with a loss of that level resuming its bullish recovery towards the 1.0108 level, its Dec 27'2010 high. Further out, resistance lies at the 1.0207 level. Beyond there will call for further gains towards its long-term falling channel top at 1.0230. USDCAD should encounter a stiff resistance and turn back lower in its primary direction again. However, if that level snaps, its Oct'2010 high at 1.0372 will be targeted ahead of the 1.0672 level, its Sept 03'10 high. Alternatively, on a break and hold below the 0.9836 level, the pair will resume its broader bearish downtrend towards its May 2008 low at 0.9818. Further down, support is situated at its 2008 low at 0.9707.
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