[LehmanBr]

• The backdrop for crude oil has turned positive after acluster of Fibonacci retracement levels between 58.60 and 57.63 contained the recent probe lower. Suggest employing 66.25 as a pivot point now –as a daily close above this level would add to upward momentum and project additional gains toward 68.36 and the double top at 73.23 thereafter.

• The early July selloff in crude oil allowed prices to reach the downside target at58.59.

• Prices have rebounded nicely from a low of 58.32, with 50% Fibonacci retracement of the April-June advance at 58.60 serving as a strong base.

• In addition, this base derives added significance and support as 38.2% Fibonacci retracement of the broader December-June advance is located nearby at 57.63.

• Prices are now poised to test resistance at 66.25 after the daily studies issued a buysignal from oversold levels last week.

• A daily close above 66.25 would add to developing bullish market sentiment and feature 68.36 as an initial target, followed by the double top at 73.23 that stalled the recovery in June.

• A daily close below 57.63 is now required in order to nullify the bullish market sentiment that is in place.

• Note that a further advance in crude oil prices would be a positive factor for the CAD, with support for USD/CAD located against the June low at 1.0784.