The USD/CAD pair fell initially during the Thursday session as the trading world believed Ben Bernanke would deliver some kind of message of further quantitative easing to the Congress, but “Uncle Ben” finally spoke up for the middle class as he suggested to Congress that they needed to work on fiscal policy. Bernanke even said that if the Fed would move it wouldn’t be as effective as the past as so much stimulus has been implemented.
The daily candle ended up being a hammer, and the oil markets also gave up gains as well. The Canadian dollar will suffer as a result, and it looks as if the trend upwards is starting to come back. A break of the highs for the Thursday session has us buying this pair again. As for selling, we think it isn’t prudent until we get below the parity level.
Written by FX Empire