USD/CAD Forecast December 10, 2012, Technical Analysis

The USD/CAD pair fell through the 0.99 support level on Friday, in order to show that there is serious downward pressure on this pair at the moment. However, we did not close below the 0.9875 level that we had suggested as a sell signal. So we are not quite ready to start selling it.

If we get that break down, we will not hesitate to start selling as we think this could signal a move down to the 0.97 handle. If we do get a bounce though, we think that we are simply landlocked in a consolidation area that is going nowhere in the short-term.

Written by FX Empire