USD/CAD Forecast for the week of December 3, 2012, Technical Analysis

The USD/CAD pair did very little during the previous five sessions as we continue to bounce around between the 0.99 and the parity handle. This pair obviously features two currencies that are very closely tied together, and as such we are trying to figure out which direction we want to go. However, it appears that the downtrend is still intact, and the easier trade is going to be to short this market if we can clear the hammer from three weeks ago. Alternately though, if we managed to clear the shooting star from two weeks ago, it would be a buy. Until we get one of those two scenarios, there are no long-term trades in this market.