The USD/CAD pair fell on Wednesday, but managed to bounce in the later hours. Because of this, we formed a hammer on the daily chart, just below the 0.9800 handle. The trend is down, and oil looks likely to break out, both of which are keenly pro-CAD, but this candle isn’t. With the shooting star-like candle from Tuesday, this shows a market that is confused at the moment. More than likely, we will be waiting for the Non-Farm Payroll report on Friday to make any real decision on the fate of this market. Until then, we expect this pair to be stuck in a tight range.
Written by FX Empire