Monday’s strong gains were initially extended yesterday. This took USDCAD to the most positive levels traded in 19 weeks and a recovery of 62% of the decline from March’s high. These highs, at overbought extremes, were not maintained however and it is this stalling, and profit taking, at important technical and psychological levels that mean the immediate outlook is more negative. Potential exists for downside to 1.0957 or even 1.0927.