USDCAD: With USDCAD tumbling lower during Tuesday trading session, the risk is for it to recapture its key support located at the 0.9804 level, its Sept 19’2011 low. While the 1.0048 level remains as resistance, our downside view remains valid. A decisive violation of the 0.9840 level will pave the way for further declines towards the 0.9779 level, its Sept 16’2011 low. Further down, support lies at the 0.9724 level, its Aug 31’2011 low. Its daily RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to climb above the 1.0033/48 levels to annul its present bearishness and bring further gains towards the 1.0146 level. Further out, resistance resides at the 1.0250 level and then the.0317 level followed by the 1.0423 level, its Dec 14’2011 high. All in all, the pair remains vulnerable to the downside on further declines.
