USD/CAD Technical Analysis September 13, 2011

The USD/CAD pair managed to pierce the parity level on Monday, but was quickly repelled as sellers stepped in at that all-important resistance area. The pair is still decidedly in a downtrend overall, it should be noted that the high on Monday is higher than the most recent high. We need to see a daily close above parity, and perhaps as high as 1.0050 in order to buy. The oil markets will have to rise in order for this pair to continue downwards. If we get that close above the parity level – we would switch our bias to the upside for the time being.