USD/CAD Forecast Nov. 1st, 2011, Technical Analysis

The USD/CAD pair rose on Monday as the Dollar got bought in mass by traders around the world. The “risk off” trade came back with a vengeance, and the USD/CAD rose as a result. The Canadian dollar is a “riskier currency” as it is tied to oil and with the oil markets falling – the CAD’s value fell as well. The pair is stopped just at the parity level, and this is considered to be our “line in the sand” in this pair. The daily close above this area has us long again, and the daily close below the Monday lows has us short again. Until then, we will watch the market and act accordingly.

Written by FX Empire