The USD/CAD pair fell for the session on Tuesday as the risk on attitude came back into the markets. The parity level above continues to push prices lower in this pair, and as a result this pair has had a decidedly bearish tone over the last couple of weeks.
The action has been choppy, and we suspect that it will continue to be as there are many supportive levels below and the massive resistance area between parity and the 1.01 handle. With this in mind, we think that this pair could continue to chop around in the short-term. The 0.97 level needs to be closed below in order to get short of this pair and the 1.01 level needs to be closed above in order to buy this market. Until then, we are staying flat.
USD/CAD Forecast March 14, 2012, Technical Analysis
USD/CAD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3