USD/CAD Forecast February 8, 2012, Technical Analysis

The USD/CAD pair tried to rally during the Tuesday session, but failed at the parity level for the second day in a row. The oil markets rallied during the session, and this certainly had some kind of effect on the pair. The market is currently sitting on top of a massive support zone all the way down to the 0.9750 level, and because of this – we can’t sell. It should be noted that we think the market probably is more bearish than bullish, but the choppiness that we see below is enough to have us looking for trades in other markets. Buying can’t be done until we get above the 1.01 level.