The USD/CAD pair fell most of the session during Thursday, but caught a bid the closer we got to the 0.99 handle. This resulted in a hammer, which is the second one in a row on this daily chart. Previously, we sell to shooting stars in front of those hammers so it looks like we are simply consolidating. We will eventually breakout of this tight range though, and when we do, we will be following whatever direction the market does.
Above parity, we would be long of this currency pair and aiming for the 1.04 level. If we managed to break down below the 0.99 handle, we would think that this market is heading to the 0.95 level. Until then, is far too tight for us to be involved.
Written by FX Empire