NEW YORK ( TheStreet) - In our weekly analysis, we highlighted the possibility of further weakness in the USD-CAD and a break below the 0.9927 level. Well, that has occurred as USDCAD is now trading below the 0.9927.Our focus now has turned to its May 2008 low at 0.9818 on further weakness. A violation there could signal a move to its 2008 low at 0.9707. Both the daily and weekly RSI are bearish and support this view. On the upside, a break and hold above the 1.0207 level will have to occur to reverse its present downside threats and bring upside gains towards its long-term falling channel top at 1.0268. USD-CAD could encounter a stiff resistance and turn back lower in its primary direction again. However, if that level snaps, its October, 2010 high at 1.0372 will be targeted ahead of the 1.0672 level, its September 3, 2010 high. Overall, as a result of a sharp selloff that is seeing the pair getting taken out at the 0.9979/27 levels, risk is developing, signaling further weakness.