The USD/CAD pair fell on Tuesday and even managed to pierce the 1.03 support level before bouncing to sit right on it at the end of the session. The resulting daily candle looks very much like a hammer on support, which is a bullish sign in classic technical analysis. With the oil markets getting close to the tops of their ranges, a bounce in this pair wouldn’t be a big surprise. However, you should wait until we see a break of the top of Tuesday’s session in order to go long. We aren’t selling this pair at this point due to the strong overall trend in favor of the Dollar.
Written by FX Empire