The USD/CAD pair fell on Tuesday in order to form a bearish engulfing candle for the session. Although this could be a sell signal, we cannot help but notice how far this market had come up to this point. With that in mind, it is almost impossible to think about selling at these higher levels, and we think that this will simply be a pullback from which to buy this market. It isn’t until we see a close below the parity level that we think this market is able to be sold. In the meantime, we just assume this is a pullback from a parabolic move that will eventually offer a nice supportive candle to buy.
Written by FX Empire