The USD/CAD pair had a fairly bearish session as we slammed back into the previous lows. However, the 0.98 handle itself looks to be rather supportive so simply selling at this point in time is probably asking for trouble. Although the markets were extraordinarily bullish and many of the pairs out there’ll look like it’s going to continue, the truth is we need to see some type of confirmation to start selling this pair. Below 0.98 is the doorway to 0.95 in our opinion. As for buying this pair, a supportive candle in this general vicinity could be used as a signal to do so as we could return to consolidation. However, we are very leery of taking that route as the action is suddenly so much more bearish for the US dollar.
Written by FX Empire