The USD/CAD pair had a bearish session on Monday as the thin volume provided an opportunity for the sellers to take the ball for a day. The pair has been extremely bullish lately, and the move impressive. However, the move has been a bit overdone so a pullback is more than reasonable. In fact, this is exactly what this session looks like.
We still see the 1.01 to parity level as massive support on the retest. Because of this, we are willing to let this pair fall all the way down to that area to look for supportive candle to buy. However, if we get a nice looking supportive candle between now and then – we would also be forced to buy. A daily close above the 1.03 level is also a buy signal. Selling isn’t done until below the parity level.
Written by FX Empire