The USD/CAD pair rose during the session on Monday to pierce the 0.98 handle, but fell back in order to form a shooting star just below it. This market broke down at the 0.98 handle, and we think that we are currently trying to test it as potential resistance.
As long as we can stay sell the 0.98, we think this market will continue lower. After all, oil is starting to form a little bit of a base, and of course the Federal Reserve is printing greenbacks as fast as they can. With this in mind, we think that the pair does continue lower on a break of the 0.9750 level. At that point time, we would start shorting again. As for buying, we don’t see opportunity to do so until we get above the 0.9950 handle.
Written by FX Empire