USD/CAD rose again on Tuesday as the gap from the weekend was filled. The pair is sub-parity which is a negative sign; however there is a ton of support lower than here. The 0.9750 level is the bottom of several layers of support, and with this in mind, it is almost impossible to sell at this time. The resistance can be seen at 1.01 that could continue to push prices to the parity area, and by all accounts this pair looks rudderless and lost. The tight range looks set to continue, and it isn’t until we are post-1.01 or sub-0.9750 before we take a position. The fact that the oil markets rallies hard on Tuesday while the CAD lost steam shows just how directionless this pair has gotten lately.
Written by FX Empire