USD-CAD: Our outlook on USD-CAD remains to the downside as we look for it to return below 0.9887 level, its 2011 low. A decisive clearance of there will call for further weakness toward its May 2008 low at 0.9818, with a violation of there targeting its 2008 low at 0.9707. Its daily RSI is supportive of this view, as it is pointing lower. Unless it hits the 1.0108 level, its Dec. 27, 2010 high, and then the 1.0207 level, the above view remains valid. However, on a violation of the mentioned two key resistance levels, further risk should build up toward its long-term falling channel top at 1.0268. USDCAD should encounter stiff resistance there and turn back lower in its primary direction again. Further out, its Oct. 2010 high at 1.0372 will be targeted ahead of the 1.0672 level, its Sept. 3, 2010 high. Overall, USD-CAD remains vulnerable to the downside long term.