The USD/CAD pair rose during the session on Wednesday, but pulled back after the Federal Reserve minutes were released. In that release, it looks as if the Federal Reserve members are ready to ease monetary policy if the US economy doesn’t pick up steam. Looking at this chart, we are in an obvious downtrend, and as such it makes sense to be short.
Yesterday, we had mentioned that a short-term buy signal would be fired by going above the highs from the Tuesday session. That has happened, and it does look like the bulls may fail to push the market higher. With this being said, if you are not in this pair we recommend simply staying out. At best, it looks confused.
Written by FX Empire