The USD/CAD pair initially fell during the Wednesday session, but as the date grew longer, we got more and more negative headlines out of Washington DC which push the Dollar higher. We still remain below the 0.99 handle though, and as a result we don’t see this is a significant move, rather a knee-jerk reaction bad news.
Even if we do get a move higher, we need to clear the 0.9950 level in order to feel that this market has broken above some kind of significant resistance. With this being said, we still look at this pair as being in consolidation between 0.99 and 0.98, and because of that we don’t see the trade in this action.
Written by FX Empire