USDCAD: With a sell off on the back of its Friday losses seen during Monday trading session, the risk is for USDCAD to weaken further. This will pave the way for further declines towards the 0.9840 level, its Mar 01’2011 low where a decisive violation if seen will aim at the 0.9804 level, its Sept 19’2011 low and possibly even lower towards the 0.9779 level, its Sept 16’2011 low. Its daily and weekly RSI are bearish and pointing lower suggesting further weakness. On the other hand, the risk to our downside outlook will be a return to the 1.0048 level. A break will send the pair further higher towards the 1.0250 level and then the.0317 level. Further out, resistance stands at the 1.0423 level, its Dec 14’2011 high. All in all, the pair remains vulnerable to the downside in the short term with eyes on the 0.9840/02 levels.
