TECHS: At A Crossroads Initial........>

DOLLAR-CANADA: TECHS: At A Crossroads

Initial resistance at the 1.3039 level has continued to limited the upside

potential for USDCAD, keeping the six week downtrend intact and the focus on the

lower boundary of the longer term bullish channel that has developed since

January. Yesterday's low of 1.2996 is now acting as support before the lower

boundary of the descending channel comes in, currently at 1.2960. Supportive

near-term technical indicators are consistent with a rebound, but break above

the 1.3039/50 is now needed to open the way for a recovery towards 1.3191 ahead

of the 1.3290 July high. On the downside, a break below the channel support at

1.2960 would put the long term up trendline support at 1.2931 under pressure.