USD-CAD Under Pressure, Pointed Lower

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 ( - Continued downside pressure saw USD-CAD weakening below last week's support of 1.0042 in early morning trading. Further downside pressure is likely toward the 0.9922 level, its daily 200 exponential moving average.

The pair has been under pressure since losing upside momentum at 1.0655 in early October. Though expected to find a breather and bounce higher on a recovery at this level, a break below the 0.9922 level will bring further declines toward the Aug. 9 low of 0.9765. Beneath that, a distant support stands at the 0.9724 level. Its daily RSI is bearish and pointing lower supporting this view.

The alternative scenario will be a reversal of its present weakness and the resumption of short-term uptrend -- a tough call at its present price levels. For this to occur, the pair will have to take out the 1.0233/1.0655 levels, its Oct. 07 low and Oct. 4 high, respectively. This will open up further upside risk toward the May high of 1.0852.

All in all, having continued to weaken, the pair remains vulnerable to the downside in the nearer term.

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.