The USD/CAD pair fell on Friday as the “risk on” rally started up. However, we are still above the 0.99 handle, which of course is a fairly significant support line. As long as we are above that area, we are hesitant to start selling, as we do see significant support just below it. In fact, we see this is a larger consolidation zone, and are not prepared to take a trade in either direction.
If we managed to close below the 0.9880 level, we are selling this pair. If we managed to break above the 1.0050 level, we are going to buy this pair. Until one of these two conditions are met, we will more than likely be on the sidelines.
Written by FX Empire