The USD/CAD pair attempted to rally on Monday, but fell short of anything that would impress us enough to get involved. The Friday shooting star suggested a continuation to the downside, and it does look like any rallies in this market are to be sold at this point in time. We think the pair will fall to the 0.97 level eventually, and at that point there will be a lot of questions asked.
Obviously, you’re going to have to once the oil markets as well, as the Canadian dollar is heavily influence by them. We think that the oil markets look right for some type of rally in the relative near future, and this could be the catalyst that since this pair down to 0.97. If that level gives way, we could see 0.95 and relatively short order. As for buying this pair, we aren’t comfortable doing it anytime soon, and as such aren’t even thinking about it.
Written by FX Empire