USD/CAD Forecast April 20, 2012, Technical Analysis

 

USD/CAD rose on the session for Thursday as the oil markets were a bit soft, and the risk appetite in the general markets fell. The pair has recently been in massive consolidation, and the move on Thursday suggests that we are going to continue to be so. The parity level above should continue to keep the market down a bit, and this will be especially so as the 200 day EMA is just above it as well. The support level down at the 0.9850 level will continue to be supportive in the mean time. The pair needs to break below than in order to sell for any length of time, and it needs to break above the 1.01 level in order to buy and hold. In the meantime, we think this pair will continue to bounce between parity and 0.99 for short-term trades and that is exactly how we will trade this market. We are in the middle of that range right now, so we sit still until we approach the parity level in order to sell on the first sign of weakness. 

USD/CAD Forecast April 20, 2012, Technical Analysis
USD/CAD Forecast April 20, 2012, Technical Analysis

Leave a Reply

Your email address will not be published. Required fields are marked *