With a reversal of its Tuesday gains taking out its Oct 07'2011 low at 1.0233 in today's trading session, USDCAD is now testing its key support located at the 1.0144 level. The pair has been under corrective weakness since temporarily topping out at the 1.0655 level on Oct'2011. We expect the 1.0144 level to initially cap declines and then turn the pair back up but if violated, we could see more weakness developing towards its Sept 22'2011 low at 1.0051 and even the 1.0000 level, its psycho. Its daily RSI is bearish and pointing lower suggesting further weakness. On the other hand, for USDCAD to annul its present corrective losses and trigger its short term recovery, it will have to break and hold above the 1.0655 level, its Oct'2011 high. Further out, resistance comes in at its Aug'2010 high at 1.0671. The bigger barrier lies at 1.0852 level, its May'2011 high. All in all, with a loss of upside momentum continuing to trigger corrective weakness, the pair is set to lose more grounds.