The USD/CAD pair fell a bit during the session on Monday as the 0.98 continues to be the focus of all things in this market. The oil markets went back and forth between wins and losses, and as such this pair followed. The market looks somewhat deadlocked, but the risk at this point is more than likely to the downside as the 0.98 level looks so resistive.
On a daily close above it though, we think this pair would continue higher – especially if we can close the 0.9950 level as it would show a breaking of resistance in this pair. As always, we will have to watch the light sweet crude markets in order to discern where this pair could go, but in the short-term we think this will be extremely volatile and probably move sideways more than anything else.
Written by FX Empire