USD/CAD Forecast for the Week of Nov. 14th, 2011, Technical Analysis

USD/CAD fell this past week after rising, and stopped to form a shooting star that looks very negative at first glance. However, there is a massive support area in the form of parity and 0.99, so we aren’t as keen to sell this pair as one might first guess. We need to see a breaking of the 0.99 level in order to short for the longer term. The pair has been in a downtrend for some time now, and we think that breaking this level would signal the next leg down. A breaking of the 1.03 would be massively bullish, negating this analysis.

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