USDCAD: Having closed lower the past week and remaining vulnerable to the downside, USDCAD faces the risk of price extension in the new week. In such a case, the 1.0000/0.9988 levels will come in as the next downside objectives. We expect the pair to find a respite here and possibly turn higher. But if that zone gives in, expect further declines to occur. Further support resides at the 0.9922 level and then the 0.9802 level. Its daily RSI is bearish and pointing lower suggesting further weakness. On the other hand, while immediate resistance resides at the 1.0064 level, the big challenge is for the pair to return above the 1.0230 level and then the 1.0248 level to reverse its present weakness. This if seen will create scope for a run at the 1.0361 level where a cap is likely. However, a breach of there will allow for more gains towards the 1.0445 level. All in all, the pair remains biased to the downside in the short term.
