The USD/CAD pair fell during the session on Tuesday as the parity level came back into play. However, it should be suggested that the 0.99 level is actually the beginning of the resistance area, and we have essentially punched through during the Tuesday session.
The orange line on the chart is the 200 day moving average, and as you can see we have popped through it as well. This suggests to me that we may eventually see a breakout above the parity level, although I do not see a technical signal that suggests that I should be getting involved at this moment. However, one of the things he you must keep in mind is that this pair will grind for quite some time, based upon the fact that the two economies are so intertwined. Eventually, the market makes up its mind and we shoot straight up or down.
I believe this is about to happen again, and this is especially true when you look at the oil markets. Oil seems to be falling around the world, mainly because of a lack of demand. It's kind of starting to think that oil prices have held up the way they have, simply because there are serious issues with people trying to find places to store crude at the moment. The idea that the price of crude should be high is essentially a reaction to quantitative easing, and possible jitters of the Middle East.
This week
I believe that the next couple of days in this currency pair could be pretty slow, but Friday should be an absolutely smashing day for it. This is because the USD/CAD pair tends to react to the jobs number out of the United States quite wildly. It's a somewhat counterintuitive thought process, but if the jobs number in the United States is poor, this pair rises.
This is mainly because of Canada's dependence on the United States as its main customer. The Canadians export 85% of their goods south, and as a result they need a healthy American labor force in order to move their goods. So while this could be a breakout between now and then, I believe it will be the jobs number that could send this pair either up or down. I may or may not place a trade over the next day or two, but this currency pair should absolutely be on your radar later this week.