The USD/CAD pair fell for most of the session but saw a nice bounce at the end of the day as the oil markets fell apart. The 1.02 level gave way, and we now are well above the 1.01 level that we said would be the “buy signal”. The daily candle for Friday is a hammer at the top of a big move higher. This can be a very bullish sign if we break above the highs of the Friday session. However, if we break the lows from the same session, the candle becomes a “hanging man”, which is one of the most bearish signals out there. Because of this, we buy a break of the top and sell a break of the lows and clearing of the 1.01 level to the downside.
Written by FX Empire