USD/CAD Forecast December 5, 2012, Technical Analysis

The USD/CAD currency pair fell during most of the session on Tuesday, but found enough support just above the 0.99 handle to continue the overall sideways motion. The market continues to be stuck between the 0.99 and parity handles, and as a result we don’t find much of a trading opportunity at this point time. This is almost undoubtedly due to the financial talks in the United States, as the two economies are so intertwined. Looking forward, it will take a break above the 1.0050 level in order for us to start buying, and a break below the 0.9975 level in order for us to start selling. In the middle of these two levels, we think it will simply be far too choppy.