USDCAD - We are yet to see a clear sign of price continuation lower instead USDCAD's price action is dominated by hesitation slightly above the 1.0000 level. While this continues, we look for the pair to trigger a corrective recovery and target its minor resistance at 1.0063 level, its April 23'10 high. A break through there will open the door for more upside gains towards the 1.0213 level, its April 19'10 high followed by the 1.0301 level, its Mar 26'10 high. We expect a halt at that level to turn the pair lower again in line with its broader medium term weakness. To reverse this impending upside risk, USDCAD must break and hold below the 1.0000 level and then recapture its 2010 low at 0.9927. That will prompt further downside pressure towards its July'08 low at 0.9818 with a breach of therebringing further weakness towards the 0.9707 level, its Feb'08 low and even lower. All in all, the pair remains hesitant as it continues to back off the 1.0000 level.
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