The USD/CAD pair fell hard on Monday as the Federal Reserve Chairman stated that the low rates in the United States were going to be used for as long as possible, stifling the suggestion that the Fed would be raising rates sooner than expected.
The oil markets took off, and the Canadian dollar gained as a result. The pair shows support at the 0.99, 0.98, and 0.9750 levels, all of which we think will give way before it is all said and done. Selling rallies in this pair will more than likely be the best way to go going forward.
Written by FX Empire