Archived IMT (2010.05.17)

USDCAD daily oscillators remain positive despite the failure of the 1.0430 high, which coincides with the 50% retracement of the decline from the May 6 high. The 24% slump in oil below $75 level is clearly reducing the once positive bias in CAD. 4-Hour chart may suggest a possible retreat towards to1.0300s especially in the event that a sustainable bounce in US indices succeeds in boosting Asian equities. But recovery stands to face 1.0420, followed by 1.0480 at the next round of equity sell-off. Market will closely watch Canadas CPI due Friday, which will impact the latest pricing of BoC rate hike.