The USD/CAD pair attempted to rally during the Thursday session, but was beat back at the 0.98 handle in order to show Canadian dollar strength yet again. The shooting star that was formed certainly is telling, and as such we think that the downward trend is about to start back up. A break of the bottom of the hammer from three sessions ago would of course get us selling again, and as such we would look for new lows.
The light sweet crude market looks like it’s trying to find some type of support, and this of course should get the Canadian dollar strengthening as well. Because of this, we actually prefer to go with the trend in sell this pair when we get that signaled. Below the 0.9750 level, we are ready to start selling.
Written by FX Empire