The USD/CAD pair fell for most of the session on Wednesday as the market tried to recover some of its “risk on” appetite in general. However, but the end of the session we saw a significant bounce, and the daily candle was a hammer.
This is significant because it not only formed “on top” of the parity level, but also the 200 day EMA – an exponential moving average that many longer-term trend traders will use. This is a very bullish turn of events, and a break of the top of the Wednesday highs will signal a buying opportunity, knowing that the 1.01 level is still resistive and could put up a good fight. Because of this, the more cautious of you out there could wait until a daily close above the aforementioned 1.01 level. Selling isn’t even a thought at this point.
Written by FX Empire