USDCAD: With the pair closing lower the past week and following through to the downside during Monday trading session today, further price extension is likely. USDCAD is now trading slightly below the 1.0000 level, its psycho level. It must convincingly break and hold below here to extend further declines towards the 0.9922 level where a break will set the stage for a move further lower towards the 0.9802 level. Its daily RSI is bearish and pointing lower supporting this view. Conversely, USDCAD must break and hold above the 1.0064/83 levels to halt is present weakness and resume its correction. This if seen should push USDCAD further higher towards the 1.0105 level and then the 1.0165 level. However, the pair must return above the 1.0230/48 levels and its declining trendline to annul its broader short term weakness. All in all, the pair remains biased to the downside in the short term.
