A Risk remains lower as the pair continues to weaken. As long as the 0.9907 level holds as resistance, we see risk of a return to its 2011 low at 0.9836. Below there will aim at its May 2008 low at 0.9818 followed by its 2008 low at 0.9707. Its daily RSI is bearish and pointing lower supporting this view. Conversely, for USDCAD to avert its current downside pressure it has to return above the 1.0056 level traded on Monday. This will resume its recovery from the 0.9836 level and then target the 1.0108 level, its Dec 27'2010 high. Further out, resistance lies at the 1.0207 level accompanied by its long-term falling channel top at 1.0210. USDCAD should encounter a stiff resistance and turn back lower in its primary direction again.
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