USDCAD: Risk Still Points Lower Short Term

USDCAD- The pair closed lower the past week failing to follow through on its previous week strength and testing a low of 1.0446. While the 1.0867 level, its Nov 01’09 high remains unbroken, USDCAD looks to head back lower towards its YTD low at 1.0204 with an invalidation of there pushing it further lower towards the 1.0100 and then the 1.0000 level. This view is consistent with its broader medium term downtrend. If however, the 1.0867 level is violated, we could see further higher prices towards the 1.0991 level, its Sept 27’09 high and then its Sept 02’09 high at 1.1101. On the whole, the pair continues to be dominated by its medium and short term downtrends and eyes a retest of the 1.0204 level.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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