The USD/CAD pair had a pretty wild session on Thursday as the pair sold off drastically. The “risk on” attitude of the markets sold the Dollar off against almost every currency. The Canadian dollar of course was going to be no different, as the commodity trade pickups lately. We still see the parity level below as a significant support level, and as such are necessarily ready to sell this pair. The fact that we gave back about 50 pips at the end of the session also suggests to us that there is no real conviction behind this move. In the interim we are looking at the possibility of a consolidation area of 1.0050 on the bottom, and 1.0250 on the top. At this moment in time, we are flat of the Canadian dollar pair.
Written by FX Empire