USD/CAD Technical Analysis October 24, 2011

USD/CAD fell on Friday and tested the parity support level in the process. The daily close is looking weak, but the level has held up. The market will be highly correlated to the oil markets, and they look ripe for a pullback. Because of this, we suspect a bounce is coming in this pair. The selling of it will be very difficult unless we manage to break below parity, and hold that to a daily close. The market should be observed for the Monday close, and not traded until we see the market’s position at that point.

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