The USD/CAD pair rose during the session on Monday and even managed to break above the parity level. This is a signal that the US dollar is going to continue to gain against the Canadian dollar. This makes sense, as the oil markets are starting to drift lower again, and economic uncertainty seems to be in the air.
Because of this, we believe that the market is returning to the previous consolidation area between 0.99 and 1.04. With this being said, we are long of this pair. As for selling, it’s not even the thought until we close well below the 0.98 handle.
Written by FX Empire