USD/CAD fell during the light Monday session as the oil markets rose overall. The market is in a massive symmetrical triangle, and this shows that the currency markets are currently trying to decide which direction it wants to go.
The pair is very beholden to the oil markets, and with all of the drama going on in Iran, there is a real chance of explosive moves. We believe that the currency traders currently are waiting to see which way the oil markets will finally decide on. The 1.01 level below is massive support as well, and it goes all the way down to the 0.99 level. Because of this, we actually prefer to buy if we get that signal, which would show up as a daily close above the triangle’s downtrend line. However, if the uptrend line gets broken, and we fall below 0.99 on a close – we would be forced to sell.
USD/CAD Forecast January 17, 2012, Technical Analysis
Originally posted here
