USD/CAD Rose again during the session on Tuesday as the oil markets sold off. This is the normal correlation between these two markets, and as a result no big surprise. However, this pair has recently started to diverge from this dynamic, and we have seen Loonie selling on days that oil rose. Because of this, we are bullish of this pair, but the charts tell us we are just coming on resistance. With that in mind, we are waiting to see a daily close above the 1.01 level in order to buy the market, and aren’t thinking sell yet, as there are far too many supportive levels going down the 0.97 level.
Written by FX Empire