The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( TheStreet) -- In a reversal of its Tuesday gains that took out its Oct. 7, 2011 low at 1.0233 in today's trading session, USD-CAD is now testing its key support located at the 1.0144 level.

The pair has been under corrective weakness since temporarily topping out at the 1.0655 level on Oct. 2, 2011. We expect the 1.0144 level to initially cap declines and then turn the pair back up but if violated, we could see more weakness developing towards its Sept. 22, 2011 low at 1.0051 and even the 1.0000 psychological level.

Its daily RSI is bearish and pointing lower suggesting further weakness. On the other hand, for USD-CAD to annul its present corrective losses and trigger its short term recovery, it will have to break and hold above the 1.0655 level, its October 2011 high.

Further out, resistance comes in at its August 2010 high at 1.0671. The bigger barrier lies at 1.0852 level, its May 2011 high.

All in all, with a loss of upside momentum continuing to trigger corrective weakness, the pair is set to lose more ground.
Mohammed Isah is a technical strategist and head of research at, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and At, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces The Professional Suite for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.