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

DOLLAR-CANADA
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.

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