USD/CAD Technical Analysis for the Week of October 17, 2011

The USD/CAD continued to fall this past week, and decidedly so. The pair looks massively bearish, but the parity level is sitting just below the present level. With this in mind, we cannot sell until we get a close below it. The recent action has been a massively bullish break out, followed by a massively bearish break down. This market is extremely volatile at this moment, and is hard to trade for longer-term traders. With this in mind, we want to see what the next weekly candle looks like, and if it reacts to the parity level in a supportive or weak way. Until then, we are sitting on our hands.