USD/CAD Forecast August 7, 2012, Technical Analysis

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The USD/CAD pair a slightly negative session on Monday, but nothing of note. What is interesting however is the fact that the parity level has held as support yet again. It looks like the buyers are stepping in at this point in time, and are hell-bent on moving the market higher.

We are in need ascending channel and near the bottom of it as well. The fact that the supportive part of the channel and the parity level matchup fairly closely gives a strong argument for buying this pair. However, this is simply a short-term trade as the ascending channel should meet up with roughly the 1.0150 level, which is been so resistive in the past. We think this is a short-term pop waiting happen, but in the long run would be willing to hold onto the trade. If we get a break above the Monday highs, we are willing to buy but only for a quick 150 pip gain or so. As for selling, we need to see a daily close well below the parity level.

USD/CAD Forecast August 7, 2012, Technical Analysis

USD/CAD Forecast August 7, 2012, Technical Analysis

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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.

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