The USD/CAD pair broke higher during the day after oil markets tumbled. The 1.35 level should be resistance, but I think we will break above it given enough time. If we can break above there, we will then test the 1.36 handle and they move above there really gets the ball rolling. At that point, I think it becomes a “buy-and-hold” type of trade. Pullbacks should be buying opportunities, but not until we break above the 1.35 handle. Ultimately, this is a market that that should continue to be volatile due to oil.
Written by FX Empire