USDCAD: With a third day of downside weakness seeing the pair selling off through its key support at the 0.9905 level, further bearish momentums is expected. In such a case, the 0.9804 level, its Sept 19’2011 low will be targeted with a violation of there turning attention to the 0.9779 level, its Sept 16’2011 low. Further down, support lies at the 0.9757 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, the risk to our downside outlook will be a return to the 0.9905 level and the 1.0049 level, its Feb 16’2012 high where a break will send the pair further higher towards the 1.0250 level and subsequently the.0317 level. This if seen will put on hold its nearer term weakness and then target the 1.0423 level, its Dec 14’2011 high. All in all, the pair remains vulnerable to the downside on further weakness in the short term.
