USD/CAD Forecast August 22, 2012, Technical Analysis

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

The USD/CAD pair fell below the recent lows on Tuesday, but bounced in order to form a hammer just below the 0.99 level. This pair does look like it’s ready for a bounce of sorts, and we think that a run back to parity is very possible. On a break of the highs from the Tuesday hammer we are willing to start going long for a short-term trade against the Canadian dollar.

Obviously, the oil markets will have to be watched but they seem to be a bit consolidative at the current position. Because of this, we think that perhaps a little bit of profit taking could be found in this market, and it could give us about 100 pips to the upside. On a break of the bottom of the hammer, we think the 0.97 is a given at that point.

USD/CAD Forecast August 22, 2012, Technical Analysis

USD/CAD Forecast August 22, 2012, Technical Analysis

Want to read more articles like this one?
Enter your e-mail address and read FX Empire content directly from your inbox.
 
We value your privacy. Your e-mail address will not be shared.
About: FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

  View all of FX Empire Analyst - Christopher Lewis's Articles    
Share Your Thoughts: Post a Comment


Your email address will not be published.