USDCAD: Threats Remain To The Downside.
USDCAD: As a challenge on the 1.1995/82 zone, its April 16’09 low/daily 200 ema was seen on Wednesday and a continuation of that weakness saw the pair weakening in early trading today, risk of a decline towards the 1.1771 level, its Jan 07’09 low is now shaping up. This view is consistent with its declines triggered off the 1.3064 level in early Mar’09.Next support lies at the 1.1464 level, its Nov 05’09 low. Additional evidence is being provided by its daily momentum indicators which are bearish and trending lower. On the upside, initial resistance lies at the 1.1995/82 zone ahead of the 1.2192 level, its Mar 19’09 low followed by the 1.2335 level, its daily 50 ema before the 1.2506 level and then the 1.2712 level, its April 01’09 high. We retain our short term bearishness on the pair. On the whole, USDCAD has resume its weakness off the 1.3064 having taken out the 1.1981/95 area.
1.1771 Jan 07’09 low
1.1464 Nov 05’09 low.
1.1304 Oct 14’09 low
1.1981/95 April 16’09 low/daily 200 ema
1.2071 April 24’09 low
1.2192 Mar 19’09 high
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