The USD/CAD pair gapped slightly lower at the open on Monday, hanging about the previous uptrend line. Because of the Canadian dollar did not rally as drastically as the oil markets did, I am a bit suspicious of a move lower. If we can break above the 1.32 level, I would feel comfortable going long at this point. As far selling is concerned, I think if we break down below the 1.31 handle, we will probably reach down to the 1.30 level below which has been very supportive in the past. If oil start falling, that could turbocharge a move higher.
Written by FX Empire