The USD/CAD pair fell during the session on Tuesday as the rally stalled. We still see the 0.98 level as an area that the buyers what have to overcome in order to even remotely convince anyone, and as such it looks like that pressure has prices a bit lower so far.
We still think in the long run that this market will fall, but currently the rumors of a Strategic Petroleum Reserve release continues to push oil prices lower. As soon as that drama unfolds or goes away, this pair should continue much lower. Based upon our previous research, we believe that the 0.92 level will eventually be hit.
Written by FX Empire