An upstream scheme based on the pseudostress-velocity mixed formulation is studied to solve convection-dominated Oseen equations. Lagrange multipliers are introduced to treat the trace-free constraint and the lowest order Raviart-Thomas finite element space on rectangular mesh is used. Error analysis for several quantities of interest is given. Particularly, first-order convergence in $L^2$ norm for the velocity is proved. Finally, numerical experiments for various cases are presented to show the efficiency of this method.