The USD/CAD pair rose again on Friday as the market found the oil contracts to be a bit sluggish. The oil markets are going to control the CAD for the foreseeable future, as it is a major export out of Canada. The markets in oil are starting to look a bit on the weak side, so this could be very bearish for the Loonie. This would bid this pair up, and this could be a trend change that is trying to happen. However, we can only trade what we see, and we do know that the parity level just ahead is very strong resistance, so we are net sellers still, at least until that mark gets closed above on a daily candle. We are looking for weakness about 100 pips above current levels, and then are looking to sell.
Written by FX Empire