USDCAD: With a strong sell off seeing the pair reversing its previous week gains to close lower the past week, further bear threats cannot be ruled out in the new week. Immediate downside comes in at the 1.0078 level, its last week low with a violation of there pushing the pair further lower towards its Nov 01’2011 low at 0.9970. Further down, support lies at the 0.9890 level, its Oct 27’2011 high where a breach if seen will turn further downside risk to the 0.9779 level, its Aug 16’2011 low. Its Weekly RSI is bearish and pointing lower supporting this view. On the upside, a break and hold above the 1.0524 level, its Nov’ 2011 high will have to occur to halt its present weakness and then turn further upside risk towards its Oct’2011 high at 1.0665. All in all, the pair has backed off higher prices and triggered a corrective weakness.
