The USD/CAD pair initially tried to reach above the 1.26 level during the day on Monday, but then pulled back about 50 pips to find support again. I think if we can break above the 1.26 level on a daily close, then the market will probably go looking towards the 1.2650 level, then eventually the 1.27 level. Pay attention to oil, it has a massive effect on what happens in the Canadian dollar going forward, and I think that is probably what’s going to drive this market more than anything else. A breakdown from here has the market looking towards the 1.25 level which of course is a large, round, psychologically significant number broadly speaking.
Written by FX Empire