The USD/CAD pair has risen during the Monday session, only to fall again and form a shooting star. This market is currently trading just below the 200 day EMA, and the parity level as well. The pair looks as if it still wants to trade within the same range that we have been trading in during the last two months.
The oil markets also formed a hammer, looking to perhaps go higher. Because of this, we think that a break down below the bottom of the session lows of the shooting star will be a solid sell signal in this pair as oil climbs again. Because of this, we are selling on a break of the lows for the Monday session. However, we also recognize this pair is probably only going to produce 50 pips or so as the range is fairly tight.
Written by FX Empire