Forex: Bullish Break for the USD/CAD Pair

on Nov 13, 2012
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iNVEZZ (New York) With the USD/CAD pair ending the previous week at 1.0010, the parity battle is extending this week as well. On November 13, FXstreet quoted the Toronto FX Research Team at TD Securities as saying that the pair’s push for new highs was not sustained through the close of trade Friday. TD Securities, however, added that the market did not sell off to the point making the downside look hugely vulnerable.

**Oil Prices, Fiscal Cliff **
With the Canadian dollar moving in reaction to its US counterpart, movements of the USD/CAD are relatively small. Traders interested in the pair should monitor oil prices, with a rise likely to boost the Canadian dollar. Analysts also see calm regarding the US fiscal cliff as fuelling appetite for riskier assets which could also benefit the loonie.

“The bullish break out we identified last week remains intact,” note the TD Securities analysts, as quoted by FXstreet. “We rather think that the 0.9985 area – neckline break out resistance, now support – is pivotal for USD/CAD in the short-run.” The TD Securities also added that if the market stayed at that level, there might be a rebound for the USD/CAD later in the week. The weekly movement of the USD/CAD pair, however, will also depend on the Bank of Canada’s quarterly review scheduled to be published November 15.

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