USD/CAD Technical Analysis October 7, 2011

USD/CAD continued to fall on Thursday as traders are willing to take on a bit more risk over the last several sessions. The pair is highly correlated to the oil markets, and the announcement of a larger than expected drawdown on Wednesday sent this pair in the downward path. However, the recent impulsive move to the upside suggests that we will eventually see a larger move to the upside. Any bad economic news will more than likely send this pair higher, and if the Non-Farm Payroll number out of America disappoints, this pair will rise as Canada is so heavily dependent on the US as an export market.