The USD/CAD pair rose during the session on Tuesday, but failed to stay above the parity level. As such, it looks like parity will continue to push prices down, and the shooting star suggests that we are going to fall from this level. To us, it looks like we could very easily find ourselves in a 100 pip consolidation range between 0.99 and parity.
The oil markets of course will have a major voice in the way this marketplace out, and as such we think that the $85 level will be crucial in the light sweet crude contract. Quite frankly, this pair will more than likely move based upon whether or not that level holds. If we break above the highs of the Tuesday session, this is extremely bullish for the US dollar and we would be long of this market. Conversely, if we managed to break the lows of the Tuesday session, we think that 0.99 will be tested again.
Written by FX Empire