We continue to hold onto our downside view on USDCAD for further corrective declines as it weakened further the past week and followed through lower in today's trading session.With a reversal of its Friday gains seen, the risk is for USDCAD to decline further towards the 1.0051/69 levels where a violation will open the door for a run at its Nov 01'2011 low at 0.9970. Further down, a breach of there will target the 0.9890 level, its Oct 27'2011 high. Both its daily and weekly RSI are bearish and pointing lower suggesting further declines. Alternatively, the 1.0317 level will have to give way to put on hold its present weakness and then target the 1.0423 level, its Dec 14'2011 high followed by its Nov 25'2011 high at 1.0524. Further out, its Oct'2011 high at 1.0665 will come in as the next upside target. All in all, the pair remains vulnerable to the downside on further correction.

Daily