The USD/CAD pair had a bullish session on Wednesday as the oil markets fell for the day. The inventory number in the United States showed a larger build than expected, so oil fell in general. Because of the negative correlation in this pair at the oil market is well known, it isn’t a surprise that we got a bit of a jump. The 0.99 level also seems to be fairly supportive as well, and it now looks as if we are going to try and return to the back and forth motion of the previous consolidation. Because of this, we are slightly bullish for the next 50 pips or so – but would only be able to take a very small position as it is countertrend.
Written by FX Empire