USD/CAD Technical Analysis October 26, 2011

The USD/CAD pair bounced hard from the parity level on Tuesday, an area that we have mentioned several times over the last week or two. The area offered support, and was urged on by the Bank of Canada not only holding rates on Tuesday, but also being very dovish on the future of the Canadian economy due to the global uncertainty in the various markets. With this in mind, it appears that we could see a bounce in this pair. Also, if the EU doesn’t come together with a reasonable solution to the crisis over there, the “risk off” trade could come back into play – forcing this pair higher as well.

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