USD/CAD Technical Analysis September 7, 2011

USD/CAD rose, fell, and bounced around during the Tuesday session as traders simply do not know what to do with this pair at the moment. The candle looks similar to a shooting star, but not quite as it is somewhere between that and a doji. The market looks a bit confused, but the 0.99 level continues to give this pair trouble. Parity would certainly be a massive resistance area at this point, and it looks as if the trend may still hold. The signal is fairly easy: A break of the lows on Tuesday gets the market selling, but a buy can’t be initiated until we close above 1.0000 on the daily chart. The trend is down, so we prefer selling if possible.

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