The pair continues to build on its recovery started from the 1.0105 level as it now targets the 1.0394 level, its July 27'10 low. A decisive clearance of there will target its July 22'10 high at 1.0501 with a cut through that level creating scope for more strength towards the 1.0675 high, its July 06'10 high. A break of that level will open the door for further higher prices towards the 1.0851 level, its 2010 high. Alternatively, on a return below the 1.0105 level, further lower prices will be targeted with eyes on the 0.9975 level and possibly lower. Overall, USDCAD continues to look susceptible to the downside nearer term despite its present recovery.

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