USD/CAD fell during the Monday session as the oil markets continue to ungulate between rising in value and falling. The oil markets are being rocked by threats of Iranians closing the Strait of Hormuz and the responses of the West in general. As the economic situation doesn’t warrant the rising oil prices, and the drama in the Middle East continues to push prices higher, the oil markets will continue to make a lot of noise.
The 1.03 level worked as resistance again, but the 1.01 level below is offering massive support. With that in mind, it looks like this pair could move sideways. The range going forward looks to be between the 1.03 and 1.01 level, and we will buy on supportive action near the 1.01 level as we think the headline risk will continue to favor owning the Dollar on the whole as the world continues to have economic and political issues.
Written by FX Empire