The USD/CAD pair fell during the session on Wednesday to retest the 1.0150 support level. With the oil markets having a relatively quiet day it’s not a surprise that this pair did as well. The oil markets look very consolidative, and as such we think this pair will be as well too. As long as we are above the 1.0150 level, we only want to buy this market as the area looks of supportive. On a break of the highs from both Tuesday and Wednesday, we would be buyers in this market as it would show to hammer like candles being violated to the upside. On the downside, we need to see a break of the hammer from Thursday in order to start selling down to the parity level. In the meantime, we think this market will be choppy, although we do favor the US dollar over the Canadian one in general.
Written by FX Empire