USD/CAD Forecast May 16, 2012, Technical Analysis

The USD/CAD pair rose during the session on Tuesday as the risk off trade continues. The oil markets also fell, with the Light Sweet Crude markets now well below the $95 support level. The pair is sitting above the 200 day exponential moving average now, and the day ended above the recent highs which is a very bullish sign.

However, the pair has resistance all the way up to the 1.01 level, and we are waiting to see a daily close above this area to consider buying as this parity to 1.01 area has been so strong for the bears lately. In the meantime, we wait patiently as we look set to buy – but haven’t got the confirmation yet. As for selling, we need a close below the parity level.

USD/CAD Forecast May 16, 2012, Technical Analysis

Written by FX Empire