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USDCAD: Reverses Gains, Set To Weaken Further (Weekly Technical Strategist).

USDCAD: With the pair reversing its previous week gains to close lower at the end of week, USDCAD now looks to weaken further in the new week.This will leave the pair targeting the 1.0051 level, its Dec 08’2011 low where a breather could occur but if that level snaps, further declines could build up towards its Nov 01’2011 low at 0.9970. Further down, support comes in at the 0.9890 level, its Oct 27’2011 high on further weakness. Its weekly RSI is bearish and pointing lower suggesting further weakness. 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 will serve as the next upside target where a breach will turn focus to its May 2011 high at 1.0852. All in all, the pair continues to face corrective weakness as it looks to extend further declines.