The USD/CAD pair formed a hammer on the Friday session as the 0.97 level offered a bit of support. This was somewhat counterintuitive, but more than likely it had to do with traders not willing to hold onto risk through the weekend. After all, there are plenty of issues going on in the Middle East right now that could rock markets on the open.
The 0.98 handle should offer resistance going forward, as it was the support of a massive consolidation rectangle previously this if we managed to stay underneath that or show weakness at that point time, we will start selling this pair. Also, a break below the bottom of the hammer from the Friday session shows weaknesses well, and we would be more than willing to sell that signal also.
Written by FX Empire