The USD/CAD pair had a bearish session on Tuesday as the bottom of the shooting star was triggered, signaling selling in this market. However, the 1.02 level looks supportive and we believe that this market will more than likely consolidate here. Below the 1.02 level, there course is the parity level, and then the 0.99 level. All of these areas could offer support to this market. The oil markets will naturally drive what happens in this pair, so those should be paid attention to as well.
Oil is a bit oversold at this point in time, so we think that perhaps this pair could grind lower for short-term trade. However, with all the problems out there around the world, we are more than willing to buy this pair on the right signals. Those would include a hammer at one of the levels mentioned previously, or a breakout above the 1.0350 level. Being patient, we prefer the long side of this trade when it appears.
Written by FX Empire