USDCAD: With the pair selling off below the 1.0000 level, its Aug 02’2012 low/psycho levelat the time of this analysis following a strong payroll, further downside risk should build towards the 0.9922 level, its Jun 08’2012 low. We are watching closely how things will pan out at the 1.0000 level, a very important support level. This view is consistent with its short term downtrend. A violation of the 0.9922 level will set the stage for a move further lower towards the 0.9802 level. Conversely, USDCAD must break and hold above the 1.0064/83 levels to resume its correction. This if seen should push it further higher towards the 1.0105 level and then the 1.0165 level. But the pair must return above the 1.0230/48 levels and its declining trendline to annul its broader short term weakness. All in all, the pair remains biased to the downside in the short term.
