USDCAD - The pair is on the verge of retargeting its big psycho/parity level at 1.0000 as a follow through lower on its Monday losses continues today. We expect a breather on an initial test of that level to turn the pair back up and possibly trigger a corrective recovery higher. However, on a decisive violation of that level, we will be looking for a push towards its July'08 low at 0.9818 and then the 0.9707 level, its Feb'08 low. Its daily stochasticsis bearish and pointing lower supporting this view. On the other hand, to prevent the above from occurring, a total 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. A halt should occur at that level and turn the pair back down in line with its larger downtrend at that level. On the whole, USDCAD retains its overall bearishness and continues to aim at the 1.0000 level and beyond.

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