USD/CAD Technical Analysis August 18, 2011

The USD/CAD pair fell below the all-important 0.98 level on Wednesday, only to bounce back up and above it. The resulting candle looks a lot like a hammer and as such, we think this pair could consolidate in the 0.98 to 0.99 level yet again. The oil markets are vital to this pair, and they are going to have to overtake the $90 level in the CL contract in order to push this pair lower.

However, we should note that the trend is certainly down, and a bounce from here has a long way to go before that changes. Because of this, we like selling on a close below 0.98 or a failure to break above parity.

Written by FX Empire