The USD/CAD pair rose for much of the session on Monday, only to turn around and form a wicked looking shooting star. The action suggests that we are going to continue to drift around in this consolidation zone, but the bearish pressure seems to be picking up. The resistance runs all the way to the 1.01 level, and the 200 day EMA is just above as well.
In order to consider this pair broken down, we need to see a close sub-0.98 to be comfortable selling. In the mean time, playing the market as a scalper could be the way to go if you feel the need to be involved. For us, we are comfortable waiting for the breakout, no matter which direction it happens.
Written by FX Empire