The USD/CAD pair shot straight up on Monday as traders continue to push it around in the consolidation box it has been stuck in for over a month. The pair looks like it is simply trying to make up its mind about the world economy , as this pair closely follows oil. Oil is a prime example of a market that is very sensitive to economic growth, and if we see a pop in oil prices, this pair could fall hard as demand for Canadian dollars will be greatly increased. However, we feel that this pair will continue to shift back and forth in this consolidation range for the near term, and is more of a scalping pair at this point.
Written by FX Empire