The pair failed to trigger a correction on Thursday and now faces the risk of further downside weakness. Further weakness could be seen towards the 1.0183 level, its Dec 12'2011 low with loss of there extending further declines towards the 1.0053 level, its Nov 03'2011 low and the 1.0051 level. A push through here will turn attention to its Nov 01'2011 low at 0.9970 and then the 0.9890 level, its Oct 27'2011 high. Its daily RSI is bearish and pointing lower supporting this view. On the upside, USDCAD will have to return above the 1.0423 level, its Dec 14'2011 high to halt its present weakness and then resume its strength towards its Nov 25'2011 high at 1.0524. Further out, its Oct'2011 high at 1.0665 comes in as the next upside target. On a breach of here, focus will turn to its May 2011 high at 1.0852. All in all, the pair continues to hold on to its medium term uptrend but faces corrective pullbacks.

Daily