The USD/CAD currency pair had a positive session on Friday after printing a hammer on both Wednesday and Thursday. The biggest problem of course is the fact that Monday and Tuesday so shooting stars! This means that we have confusion at best in this currency pair, and any rallies will more than likely find resistance at the 0.99 handle.
With the fiscal cliff talks going on, it appears that this market will have nowhere to go. The two currencies are very intertwined, as is the two economies. Because of this, it is not surprising at all to see the fact that this pair really doesn’t know what to do with the moment, and as such we need to see significant strength above the 0.9950 level in order to start going long or significant weakness and a break below the 0.98 handle in order to start selling.
Written by FX Empire