The USD/CAD pair fell during much of the session, but bounced at the 0.98 handle in order to prove the area supportive yet again. Right now, it looks like we have a serious fight on our hands and the resistance will run all the way to the 0.9950 level. If we can get above that area, we think that this pair will continue much higher.
On a move lower, we think that this pair could continue much farther south and possibly even if the 0.92 handle. We think that the oil market will be the gauge from which this pair will be measured. If oil falls, we think that this market will continue higher. However, we should note that the oil markets are showing signs of support now, and if that’s the case we should continue lower.
Written by FX Empire