The pair remains weak and vulnerable to the downside. As long as USDCAD remains below its key support at the 1.0048 level , further downside threats are inevitable. A sharp sell off during Monday trading session has confirmed the above view and opened the door for a run at the 0.9840 level, its Mar 01'2011 low. A decisive violation of here will aim at the 0.9804 level, its Sept 19'2011 low. Further down, on continued weakness support lies at the 0.9779 level, its Sept 16'2011 low. Its daily RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to climb above the 1.0033/48 levels to annul its present bearishness and then bring further gains towards the 1.0146 level. Further out, resistance resides at the 1.0250 level and then the.0317 level followed by the 1.0423 level, its Dec 14'2011 high. All in all, the pair remains vulnerable to the downside in the short term.

Daily