The USD/CAD pair fell during the session on Thursday as the oil markets were rocked back and forth due to rumors of the Strategic Petroleum Reserve being tapped by both the United States and the United Kingdom. However, at the end of the day it was denied, and we saw the losses in the oil markets recovered. With this came choppy action in this pair for the session as the Loonie is almost always sensitive to the price of oil.
The parity level has recently held this market down, but there are multiple support areas below the current levels that also keep it afloat. With all of this in mind, we are sitting out as we see this pair as a scalper's market at the moment. A break above the 1.01 level gets us long, and a break below the 0.97 level has us selling. Until then, we are flat.
USD/CAD Forecast March 16, 2012, Technical Analysis
USD/CAD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3