With USDCAD extending its bullishness the past week following a break and hold above the 1.0310/17 levels, further upside is expected in the new week. In such a case, further upside is likely towards the 1.0524 level where a violation will call for a run at the 1.0600 level, its psycho level. Further out, resistance lies at the 1.0655 level. Its weekly RSI is bullish and pointing higher supporting this view. On the downside, support lies at the 1.0310/17 levels, where a reversal of roles is likely to occur and turn the pair upside. However, if this fails, expect the pair to aim at the 1.0205 level and then its May 22'2012 low at 1.0150 level where price hesitation may occur. If this breaks, further declines could target its psycho level at the 1.0100 level. All in all, the pair remains biased to the upside medium term on further strengthen.

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