USD/CAD Technical Analysis for the Week of October 24, 2011

USD/CAD fell on the week, but remains above the parity level that we have marked as massive support. The market continues to be held hostage by the oil markets, and those looks like they could be ready for a pullback. The bounce at a parity level in this pair isn’t a big surprise, and would continue to show how important the “1” level is in all pairs. The pair had a massive explosion to the upside, so this pullback isn’t unwarranted. The candle for the week does look bearish at this point, but if there are any negative headlines out there – this pair will rise as well. At this point, we think a bounce should be coming, and would look for a buy signal on the daily chart.