USDCAD: Nearer Term Correction Activated

USDCAD- The pair could be on its way to a third-day of corrective recovery having followed through higher today on its Wednesday gains. With USDCAD trading above its minor high at 1.0615(17-11-09), risk should build for additional move higher towards its Nov 06’09 high at 1.0777 with a clean break and hold above there targeting its Nov 01’09 high at 1.0867.A cap is envisaged at that level. Its daily stochastics and RSI are bullish and pointing higher supporting this view. Supports are seen at the 1.0615 level and its Nov 04’09 high at 1.0592 with a turn below there pushing the pair further lower towards the 1.0424 level, its Nov 16’09 high  and then its YTD low at 1.0204. Below the latter will activate the resumption of its medium term downtrend now on hold towards the 1.0100 and next the 1.0000 level. On the whole, USDCAD has triggered a corrective recovery and should strengthen further nearer term though still maintaining its broader medium term downtrend.

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