USDCAD: Price hesitation may have set in but USDCAD continues to hold on to its broader medium term uptrend while holding above its key resistance at the 1.0310/17 level. This leaves the risk of a return to its resistance zone at the 1.0423 level, its Dec 14’2012 low and the 1.0445 level. Further out, resistance resides at 1.0500 level. Its daily RSI is bullish though in an overbought zone. On the downside, support lies at the 1.0310/17 levels, where a reversal of roles is likely to occur. However, if this fails, expect the pair to aim at the 1.0205 level and then its May 22’2012 low at 1.0150 level where price hesitation may occur. If this breaks, further declines could target its psycho level at the 1.0100 level. All in all, the pair remains biased to the upside medium term.
