USD/CAD Technical Analysis August 23, 2011

The USD/CAD pair fell and then rose on Monday, showing how much the markets lack conviction these days. The oil markets are playing havoc with the CAD, and the appreciation of said currency is simply difficult to do at this point. Because of this, we feel that the USD will rise against the CAD, but will not buy this pair until we close above the 1.0000 level as we see it as long-term resistance. A break below 0.9800 will have us shorting this pair, but until we get one of these two – we simply see this market as choppy and consolidating.

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