TECHS: Downside Exposed *RES 4:.......>

DOLLAR-CANADA: TECHS: Downside Exposed

*RES 4: 1.3270 High Dec 6

*RES 3: 1.3240 High Dec 11

*RES 2: 1.3205 High Dec 13 and initial key resistance

*RES 1: 1.3186 High Dec 16

*PRICE: 1.3164 @ 05:59 GMT Dec 18

*SUP 1: 1.3115 Low Nov 5 and Low Dec 16

*SUP 2: 1.3109 76.4% retracement of the Oct 29 - Nov 20 rally

*SUP 3: 1.3075 Low Oct 30

*SUP 4: 1.3042 Low Oct 29 and key support

USDCAD remains vulnerable having failed Monday to hold above the 61.8%

retracement of the Oct 29 - Nov 20 rally, at 1.3151. This confirmed an extension

of last week's sell-off and negates the bullish outlook that we had recently

highlighted. The break lower paves the way for weakness towards the 1.3109,

76.4% level. A breach of this support would open 1.3075 and 1.3042. The latter

is the Oct 29 low. Resistance is seen at 1.3186 initially ahead of 1.3205.