The USD/CAD pair fell during the shortened Monday trading during the Christmas Eve holiday. Looking this chart, we cannot help but notice that the 0.9950 level is significant resistance, while the 0.9800 level offers support. Because of this, we feel that this market will continue to bounce around in this area until we get some type of resolution with the “fiscal cliff” talks in Washington DC. This is because the two economies are so hundred line that it makes sense that traders would be somewhat hesitant to take serious positions in this market in till clarity is found. Once we break out of this consolidation range, we are simply going to follow the breakout in whatever direction it happens.
Written by FX Empire