The USD/CAD pair had a wild day during the Wednesday session as various factors continue to push and pull at it. The oil markets broke well above the $100 level, which is very bullish for the Canadian dollar. However, the possible downgrading of US banks as a result of exposure to EU banks by Fitch has spooked the markets into buying the Dollar for its “safe haven” status. At the end of the day, a long-legged doji was formed. The 1.03 held as resistance, but if it gives – this pair could go much farther. The parity level should be supportive, and probably so down to the 0.99 level. The pair remains range bound at the moment, and as such – we trade it as a scalper’s pair and only aim for a few dozen pips at a time.
USD/CAD Forecast Nov. 17th, 2011, Technical Analysis