The USD/CAD pair fell during the session on Monday as the parity level offered resistance yet again. However, we see this market has been stuck between 0.99 and parity, and as such aren’t willing to get involved quite yet. After all, this market is influence by the price of oil, and we don’t know what’s going to happen in the Middle East.
The 200 day exponential moving average is sitting just above the parity level, so this of course is bearish. If we managed to break down below the 0.99 handle on a daily close, we are more than willing to start selling again. However, if we break the shooting star from Friday to the upside, we think this would be a massively bullish sign. With this being said until we get one of these signals, we will not be trading this pair.
Written by FX Empire