USDCAD: Corrective Recovery Still Intact (Currency Outlook)

USDCAD:  While we still hold our upside outlook on USDCAD on correction, the risk is for the pair to continue to consolidate with a possible downside bias.This is coming on the back of its shooting star candle pattern seen on the weekly chart. However, if we can see a return above the 1.0008 level, its Aug’2011 high, ways will open 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.