[Calxy]

USD/CAD – The USD’s slide under descending trend support at 1.0545/50 – and below the 50% retracement support of the 1.02/1.08 rally clears the path for a continued fall in funds towards the mid 1.04 area in the short term. Daily charts suggest that the CAD continues to correct from oversold conditions on a number of fronts and we cannot exclude the potential for the CAD to rally beyond the mid 1.04 level in the near-term. There is strong intraday resistance now at 1.0550/60 and again at 1.0590/00. The early Monday peak at 1.0779 is now rather distant but strong short term resistance. Below 1.0450/60 support, there is not too much in terms of USD support until the 1.02 low from mid-October.