USD/CAD Technical Analysis August 24, 2011

The USD/CAD pair fell during the Tuesday session, but only slightly. This might be because of the uncertainty involving the Jackson Hole meeting of central bankers this week. On Friday, Ben Bernanke, the Federal Reserve Chairman, will give a speech. This speech is becoming more and more important as traders convince themselves that the Fed is going to step in and bail them out again. If there is no quantitative easing to be found, the USD should gain as the market has been selling it on the whole, and with these two currencies being so interconnected, there is a real chance to see this pair shoot straight up if he doesn’t offer QE3. However, the parity level needs to be broken above, or the 0.98 needs to be broken below in order to finally get a signal as to the direction of this pair.

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