TECHS: Bears Need Close Below.........>

DOLLAR-CANADA: TECHS: Bears Need Close Below Channel Support.

USDCAD recovered off Friday's low to 1.3040, but failed to take out resistance

from the Aug 2 high. The subsequent reversal consolidates either side of 1.3000

looking for direction. A hold and close above the 1.3040 level is required to

stabilise the near-term outlook and allow a more sustained recovery towards

1.3096 and the 1.3116 near term pivotal point. Gains above here would suggest a

base is forming, shifting to a bullish outlook. However, failure below 1.3040

keeps the pressure on the downside targeting the 100-dma and channel support

around 1.2955/60, just ahead of the long term up trendline support from January

at 1.2931. A break below here would trigger a more significant bearish signal,

bringing the 1.2819 area in to play which also holds support from the 200-dma.