USD/CAD is at 0.9995, just a shade below parity. The psychological mark is important but the better level to watch is 1.0050, which was the February double top. Last week’s high of 1.0035 also bears watching.
I see downside in this pair and note that the 55-day moving average fell below the 200-dma (at 1.0007) on Friday. The last negative crossover of 55-dma and 200-dma led to an 800+ pip decline. At the moment, it’s tough to step out in front of the negative sentiment in markets but the risk/reward is there.
The major upcoming event is tomorrow’s Federal budget but the latest chatter suggests austerity measures will be light.
