USD/CAD Forecast May 31, 2012, Technical Analysis

The USD/CAD pair has been ripping higher for a couple of weeks now. This pair is actively tracking the weakness in oil, and the oil markets gave way on Wednesday. Oddly enough, the 1.03 resistance level has held prices down though. The USD/CAD and oil markets can sometimes lag each other by a day or two. It is because of this that we think the pair goes higher, but would be a bit cautious until we see that daily close above the 1.03 resistance area. At that point, we are more than comfortable buying this pair as the Dollar is king at the moment, and the “risk off” trade should continue to push this pair higher.

USD/CAD Forecast May 31, 2012, Technical Analysis
USD/CAD Forecast May 31, 2012, Technical Analysis

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