USDCAD: Consolidating With Upside Bias (Special Focus)

USDCAD:  Though still consolidating, our bias remains higher towards the 1.0008 level, its Aug’2011 high. A clearance of the 1.0008 level will set the stage for further strength towards the 1.0056 level, its Jan’2011 high. Further out, on price extension we may see USDCAD targeting the 1.0207 level, its Dec 20’2011 high. On the downside, the risk is for the pair to turn back lower below the 0.9777 level. This if triggered will open the door for more declines towards its July 18’2011 high followed by the 0.9404 level with a violation of there turning threat towards the 0.9300 level. All in all, USDCAD remains bullish as long as it maintains above the 0.9777 level though facing price hesitation.