USD/CAD fell for most of the session on Tuesday, but bounced later in the session to close above the all-important parity level. The pair will continue to be held hostage by the oil markets, and as a result could be difficult to get a good read on.
The parity level is important, but the support goes all the way down to the 0.98 level for our money. The pair is a buy only pair, at least as far as simplicity is concerned. The selling of this pair isn’t a real thought to us until we close below 0.97 – something that could take some time. We would be willing to buy on a break above the highs from the shooting star on Monday as it would show signs of real strength.
Written by FX Empire