USD/CAD fell at first on Wednesday as oil rose, but the Saudis stepping into the market as saying that they are willing to produce more in response to any blocking of the Strait of Hormuz by Iran. The US Navy has stated they would get involved with the 5th Fleet that is currently situated in the area. The markets have suddenly decided that perhaps the Iranian threat isn’t much.
The entire area down to the parity level is support. The shape of the daily candle being a hammer does suggest that we are getting ready to bounce again. The Dollar being a safe haven should continue to see money flowing into the US as well. With this in mind, we are willing to buy on a break of the top of the Wednesday candle.
Written by FX Empire