With USDCAD rallying within its established consolidation zone (0.9777-1.0008) to close higher at then end of the week and building on those gains in early trading today, pressure is now developing towards the 1.0008 level, its Aug'2011 high. Further out, resistance lies at the 1.0056 level, its Jan 31'2011 high followed by the 1.0207 level, its Dec 20'2011 high. A break will call for more strength towards the 1.0372 level. Its daily and weekly RSI are bullish and pointing higher suggesting further strength. On the downside, the risk to this analysis will be a turn back lower below the 0.9724 level, its Aug 31'2011 low. If this occurs it will open the door for more declines towards its July 18'2011 high at 0.9631 followed by the 0.9404 level with a violation of there turning threat towards the 0.9300 level.

Special