USDCAD: All is not clear yet as bears pushed the pair lower on Tuesday following its Monday positive close. However, we think while the 1.0280 level, its .618. Ret (0.9927-1.0851 rally) and the 1.0244 level, its May 18'10 low continue to hold as supports, USDCAD should retarget its Jun 15'10 high at 1.0358 and then its Jun 09'10 high at 1.0514.
A violation of there will allow for more strength towards its Jun 07'10 high at 1.0677 with a break extending more gains towards its 2010 high at 1.0851. Alternatively, in case a follow-through lower on its Tuesday occurs, pressure should build towards the 1.0280/44 level. Below this zone will clear the way for additional weakness towards the 1.0108 level, its May 13'10 low.