USDCAD: Having reversed its intra day losses and close higher above its April 27’2011 high at 0.9572 on Wednesday, further gains currently seen could push the pair towards the 0.9709/20 levels. its April 18/May 05’2011 high.
A convincing break above there will call for a run at 0.9824 level, its Mar 24’2011 high and possibly higher. Its daily RSI is now bullish and pointing higher supporting this view. Alternatively, the risk to our analysis will be a return below the 0.9511 level, its May 11’2011 high with a loss of that level targeting its 2011 low at 0.9446 followed by the 0.9400 level, its psycho level.
Below there if seen will pave the way for more weakness towards the 0.9300 level and then the 0.9200 levels, all representing its psycho levels. The psycho levels as support are necessary because of the absence of resistance levels.