With a strong sell off pushing the pair below the 1.1031/36 levels, its Jan 27/Feb 05 2014 lows, further weakness is envisaged. Support comes in at the 1.0904 level, its Jan 17 2014 low with a cur through here extending weakness towards the 1.0850 level and then the 1.0800 level, its psycho level.
Its daily RSI is bearish and pointing lower supporting this view. On the other hand, resistance resides at the 1.1031/36 levels, its Jan 27/Feb 05 2014 lows.
A reversal of roles as resistance is likely to turn the pair back down at this area but if violated, further gains could occur towards the 1.1137 level. A violation will aim at the 1.1223 level, its Jan 31 2014 high and possibly higher towards the 1.1300 level where bears may come and turn it lower. All in all, USDCAD continues to face further downside threats.
Employment data in Canada came in better than expected, with the Canadian unemployment rate dropping to 7%.
For more, see the CAD forecast.
Guest post by FX Tech Strategy
