As highlighted in our previous analysis of the possibility of USDCAD turning lower, that is presently happening. It suggests that the pair may have ended its corrective recovery and could be building up pressure to the downside. Support lies at its Sept 25’2012 low at 9755 with a cut through here threatening further downside towards the 0.9692 level. A violation will call for more declines towards the 0.9631/00 levels and then the 0.9500 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to return above the 0.9841/59 levels to annul its present bear threats. This if seen will open the door for additional gains towards the 0.9945 level. Further out, the 1.0000/83 levels comes. All in all, the pair remains biased to the downside in the medium term.
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