The USD/CAD pair rose during the session on Monday as the risk appetite around the world fell. The top of the recent consolidation level was broken, but the pair did pull back some in the end. The session produced a shooting star, and while this looks bearish, the recent cluster of action suggests that we are going to fall back into the range of 1.02 to 1.03 as it seems to be the area that the pair is comfortable with. The oil markets are going to be vital in determining the value of the CAD, and as a result we think that if oil falls – we will buy this pair. In the meantime, we suspect that the pair will be fairly quiet.
Written by FX Empire