USD/CAD Forecast December 19, 2011, Technical Analysis
On Friday, the USD/CAD pair managed to retest the 1.03 level as support and finished the day on a positive note. The oil markets are presently going to be the tell for the pair as the Brent market in particular looks very weak. The Loonie is heavily influenced by this
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On Friday, the USD/CAD pair managed to retest the 1.03 level as support and finished the day on a positive note. The oil markets are presently going to be the tell for the pair as the Brent market in particular looks very weak. The Loonie is heavily influenced by this commodity, and as long as there is pressure on the oil markets, there will be upward pressure on this pair.
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The Dollar is enjoying a bid in this “risk off” environment, and as long as the EU is struggling with this crisis, there will remain strong demand for Dollars. This keeps us from selling Dollar related assets currently, and especially against the commodity currencies like the Loonie. As long as we can keep above the 1.03 level, we are buying dips.