The USD/CAD pair initially went sideways at the open on Monday, but then fell to reach towards the 1.2440 level. We then bounced after that, but I think that there is a significant amount of resistance above, and that the 1.25 level should bring in quite a bit of selling pressure. Because of this, I am looking for a short-term rallied to pick up a bit of value in the Canadian dollar. I don’t have any interest in buying, because quite frankly we don’t have enough room to move. There is a weekly uptrend line below, but it appears that the market is continuing to try and build up enough downward momentum to break below it.
Written by FX Empire