USD/CAD Technical Analysis October 27, 2011

USD/CAD fell hard during the Wednesday session as the rumors flew out of Europe that some kind of deal has been reached. At the close of the US session however, there are just that – rumors. The parity level is considered to be massive support, and until it gets broken below, the pair cannot be sold as there should be a lot of buying at that level. We have been looking for a daily close below that area before we can sell, and until then – we won’t. Buying cannot be done until we see some kind of supportive candle in the parity area, perhaps a hammer or bullish engulfing one.

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