USD/CAD: Pressured To The Downside, Eyes The 1.0000 Level

USDCAD-A follow through lower is now underway as the pair is currently testing its 2010 low at 1.0059 (as at the time of this analysis). As referenced in our previous analysis, a decisive break of that level will bring its big psycho/parity level at 1.0000 into focus. We may see a breather on initial test of there turning USDCAD back up and possibly triggering another corrective recovery higher. However, on a violation of that level, we will be looking for further declines towards its July'08 low at 0.9818 and then the 0.9707 level, its Feb'08 low. On the other hand, to prevent the above from happening, a decisive clearance of the 1.0219/04 levels and the 1.0301 level, its Mar 26'10 high must be established to create scope for more corrective recovery towards the 1.0320 level, its Mar 11'10 high and then its Feb 22'10 low at 1.0368.Overall, with its broader bearishness remaining intact, risk of a test and an eventual break of the 1.0000 level is on the cards.