USD/CAD Forecast August 20, 2012, Technical Analysis

The USD/CAD pair rose during the Friday session as the 0.9850 level acted as support. The result of this was the printing of a hammer for the weekly candle, and it does look like we are going to make some attempt at a rally at this point. This would make sense, as the market has been oversold for quite some time now.

The oil markets do look healthy though, so we suspect that any rally in this pair will be a rally that should be faded. Because of this, we are not willing to buy this bounce, but rather would see some type of weak daily candle in order to sell from. We suspect that the parity level will offer quite a bit of resistance on the bounce back up.

USD/CAD Forecast August 20, 2012, Technical Analysis

Written by FX Empire