The USD/CAD pair rose during the session on Monday, breaking above the 1.04 level. However, we did not break the top of the candle from Thursday that we had suggested was a signal. Because of that, we need to see a break over the 1.0450 level in order to be confident enough to start buying. Oil markets have been absolutely parabolic, but for some time now this pair has decoupled itself from the usual correlations. Because of this, we will simply ignore the oil markets, and wait for that breakout to the upside to start buying. On the other hand, if we managed to close below the 1.03 level, we would become very bearish.
Written by FX Empire