USD/CAD Technical Analysis October 18, 2011

The USD/CAD bounced on Monday as the trading world started to shun risk assets globally. The oil markets were soft, and so were the equity markets. This sends risk assets down, and in this case – the Canadian dollar.

We mentioned the parity to parity +50 level as a question to be answered. It was the site of a major breakout recently, but hadn’t been retested yet. It has as of Monday, and it shows to be supportive. Because of this, we feel the next leg in this pair is up. As long as parity holds up in this pair – we are willing to buy dips as the global outlook is still very shaking in general.

Written by FX Empire