The USD/CAD pair fell during the session on Wednesday to form a shooting star sitting on top of the 1.01 support level. The pair looks like it is closing the oil markets, and as those markets look ready to breakout, it would make sense of this pair would break down. The crucial number in the light sweet crude markets will be the $91 level. If that level gives way to the bulls, it is very likely that this pair will break down below the 1.01 level and continue down to the parity mark.
We think that support will definitely come into parity, and could cause a bounce negating the bearishness of this currency pair. It isn’t in till we see a move below parity that we think any continue to move can happen. As for the upside, we need to see the 1.0250 level taken out to start buying at this point. As for buying, we need to see the 1.0250 level taken out to the upside in order to feel comfortable doing so.
Written by FX Empire