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USD/CAD: With price extension now seen following its past week decline, further downside pressure is likely in the days.

The only respite to this will be a return and hold above the 1.0418 level. Support lies at the 1.0350 level where a violation will aim at 1.0300 level. Bulls may come in here and push USD/CAD higher but if that fails to occur expect the pair to weaken further towards the 1.0250 level and then the 1.0181 level. Its daily RSI is bearish and pointing lower supporting this view.

On the other hand, resistance resides at the 1.0450 level where a breach will target the 1.0500 level. This level if taken out will call for a run at the 1.0550 level followed by the 1.0600 level. All in all, USD/CAD continues to face its downside threats.

Guest post by  FX Tech Strategy