USD/CAD rose at first during the Monday session, but was quickly beat back down by the sellers as the trend continued to the downside. The parity level is still acting as support, but the recent action in this pair makes us very leery of buying. The oil markets will continue to push this pair around, and until there is some kind of resolution in that market – this one will be held hostage by it. Since we see a ton of support all the way down to 0.9750 once we get below parity, we simply aren’t willing to sell at this point. With the shooting star formed on Monday, we aren’t willing to buy either – unless of course the daily close is above the top of the shooting star, which is a massive bullish sign. In the meantime, we are flat of this pair.
Written by FX Empire