USD/CAD fell during the Friday session as the oil markets took off. With this pair’s sensitivity to the price of oil, it was no surprise that there was demand for the Loonie. The parity level still sit below and we feel that the downside potential is rather limited at this point as a result. The breaking of the 0.99 level is what it would take in order to short this pair now. The parity area could produce a hammer or supportive candle which we would buy – under the idea that we are continuing to consolidate.
Written by FX Empire