USD/CAD Technical Analysis September 23, 2011

USD/CAD shot straight up on Thursday as traders sold off the oil markets globally. The CAD is highly sensitive to the price of oil, and the fact that the world was buying Dollars suddenly makes this pair a great buy. The pair is known for making violent moves after consolidating for long periods of time. It appears that we are ready to really get moving now, and that the parity level should be a bit of a floor. 1.03 is a resistive area, but the writing seems to be on the wall. We would love to see a pullback and a supportive candle on the 4 hour above the parity level to get us buying for a larger move.