The USD/CAD pair rose during the session on Wednesday as the oil markets fell apart as well. However, we are approaching a fairly significant resistance area in the form of the 0.9850 level, and the next 100 pips or so should give the buyers a bit of a struggle.
We do recognize the fact that we have broken above the 0.98 handle as very bullish, but the truth is that we still have a long way to go before we can start buying. Simply put, we are not selling, nor are we buying.
If we managed to drift back down below the 0.98 handle on a daily close, we are more than willing to start selling as this market is undoubtedly in the downtrend. However, we recognize that if we get above the 0.9950 level, we are much stronger indeed and would start buying this market as it is showing momentum changes at that point.
Written by FX Empire