USD/CAD fell on Wednesday as the pair continued the move down. However, but the end of the session, the pair had bounced enough to close higher. The resulting hammer looks fairly supportive, and would indicate that perhaps the Dollar will get a bid for the session on Thursday. The pair looks very choppy overall, and to be honest – the situation in the Middle East involving the Iranians makes this pair difficult to trade because of the correlation with oil.
The 1.01 level below should be the start of massive support going forward, so if we had to take position in this pair – it would be a long one. The breaking of the Wednesday session highs would be a classic buy signal, and while it could be done – we feel this move would be more of a grind and less of a serious move. Because of this, we are slightly bullish, but not so much that we feel the need to buy now.
Written by FX Empire