USD/CAD Technical Analysis September 26, 2011

USD/CAD climbed again on Friday as traders sold oil markets off in large amounts. The oil trade is directly related to the USD/CAD trade, and such we expect the CAD to gain in value as oil rises, and vice versa. The day’s action saw another attempt at 1.03, and although we did break through again, it was much more muted on Friday than Thursday. It makes sense that we could see a pullback at this point, as the oil markets look like a bounce is in the cards. We suggest that pullbacks are to be welcome buying opportunities at this point. The parity level should be massive support now, and so could a couple of the “round numbers” below. 1.02 and 1.01 are areas that we are looking for supportive candles from which to buy.

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