USD/CAD Technical Analysis October 14, 2011

The USD/CAD pair rose during most of the day on Thursday, only to fall late in the session. The result is a shooting star at the bottom of a recent down move. The candle could be the start of further weakness in this pair, as the USD finds itself on the back foot against most other currencies. The resulting set up is if the bottom of the candle gets broken – it should see lower prices. The oil markets have proven especially resilient lately as well, and this could continue to drive demand for the Canadian dollar. The parity level could continue to be very supportive though, and we would expect a bit of a reaction to it. A breaking of the top of this shooting star-shaped candle would be massively bullish.