USDCAD: With an end to its recovery seen following a sell off on Wednesday and a follow through lower on Thursday, the pair faces the threat of a return below the 1.0064 level. This level is now being testing, suggesting an eventual break will turn attention to the 1.0000 level, its psycho level. Further down, support lies at the 0.9922 level, its Jun 08’2012 low. Its daily RSI is bearish and pointing lower supporting this view. However, USDCHD must return above the 1.0230/48 levels and its declining trendline to annul its present weakness. This will set the stage for a move higher towards the 1.0361 level and possibly the 1.0445 level. Note that two of such corrections failed in the past, so we should be cautious with this one. All in all, the pair remains biased to the downside in the short term.
