The USD/CAD pair rose during the Wednesday session to break above the 0.99 handle. However, we aren’t above the 0.9950 level which of course would free the buyers to push the price of this currency pair much higher. We think though that the 0.98 level should be rather supportive at this point in time, as it is the bottom of consolidation going back well over a year.
On the top side of this particular consolidation area we see the 1.04 level as being resistive. Yes, we know that this pair has been be down recently but there is no denying that over the longer-term charts it looks very sideways – just with a large range. It is because of this that we are willing to buy this pair on signs of support and a break above the 0.9950 level. It isn’t until we close below the 0.97 that we are willing to sell.
Written by FX Empire