USD/CAD continued to run higher during the session on Tuesday, even as the oil markets ran higher at the same time. Normally, the Canadian dollar gets a bid on oil demand. This shows just how “risk off” the market really is at this point in time. The market has broken above the 1.03 level, and this is a signal that we could be making a run towards the 1.05 level again, and perhaps the higher 1.07 level from late September.
We are willing to buy on pullbacks, and will be happy to do so. The 1.02 area looks like the bottom of that support level, and we think this area should give us a supportive candle from which to buy. We are very leery of selling this pair right now as the US dollar is the currency everyone wants to own right now.
Written by FX Empire