USDCAD: Weakens, Closes In On Key Support (Daily Technical Analysis)

As continued downside weakness remains in force, USDCAD looks to recapture its key support located at the 0.9841 level, its Aug'2012 low. A decisive clearance of here will resume its medium term weakness towards the 0.9800 level. A violation of there will allow for a move lower towards the 0.9700 level, its psycho level and possibly towards the 0.9600 level. Its daily RSI is bearish and pointing lower supporting this view. Conversely, the only way to prevent this bear threat is for the pair to decisively break and hold above the 0.9945 level. This if seen could propel it further towards the 1.0000/83 levels. A breach will aim at the 1.0105 level and then the 1.0165 level. All in all, the pair remains biased to the downside in the medium term.