USD/CAD Technical Analysis October 28, 2011

The USD/CAD sliced right through the parity level on Thursday as the EU finally came out with a bailout plan. The commodities markets took off as the US dollar was sold off against everything. The oil markets really took off, and as a result – the CAD became much desired. The closing on a daily candle well below the parity level has us thinking sell now, but it should be noted that the next 200 pips or so are likely to be a grind as there are a lot of orders in this area. We like selling rallies, at least until we close above parity on the daily chart.

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