The USD/CAD pair shot straight through the parity level on Tuesday as traders continued to embrace the “risk off” trade. The pair is highly sensitive to the risk parameters of global trading, and as such it will often rise in times of uncertainty. The parity level continues to use the parity level as a barometer of which direction you want to be in. At this point, it is looking more and more like we want to be long. The pair could be bought on pullback to the parity level that shows supportive candles in order to join the market. The breaking of the top of the daily candle on Tuesday has resistance just above in the 1.03 level, so we don’t think there is a ton of room to move to the upside from here without resistance coming into play. As the world continues to worry, this pair could rise. However, watch oil – if it rises, this pair will fall, and vice versa.
Written by FX Empire