USD/CAD Technical Analysis October 31, 2011

USD/CAD rose and retested the parity level on Friday, only to fall back down. This shows us that the breakdown in this pair was a serious one, and we think a breaking of the lows on Friday could send us into selling positions. However, with all of the “noise” in the area at these levels, we think the action could be a grind, and less of a meltdown. The overall trend is still down, so we prefer selling at this point. We wouldn’t buy unless we find a way to rise and close above parity again.

Written by FX Empire