The USD/CAD pair fell hard on Tuesday as the 1.03 level proved to be too much. We suggested that a break of the Monday low would be a sell signal, and this proved to be true. However, mixed signals coming out of the EU and the proposed “haircut” on Greek bonds shook the Forex markets late in the day, driving people into buying the USD. The Dollar gained against all currencies, and the Loonie was no different. It should be noted that the end of the day had the 1.02 level looking somewhat firm as well. We aren’t willing to sell after the afternoon reaction, but buying is going to be hard to do until we get a new high.
Written by FX Empire