The USD/CAD pair fell rather significantly during the session on Tuesday, as the 1.02 level got broken down by the sellers. This coincided with a strong loyal market, so of course the move makes sense. However, much like the oil markets we see a limited amount of space for this market to move at the moment. In the light sweet crude market, we are getting close to some significant resistance above, and think that the rally will last one, maybe two days longer. This should coincide with an attempt to break down below the 1.01 handle. It isn’t this level that we see significant support and would start buying this pair if we saw supportive price action. At the moment, we are on the sidelines.
Written by FX Empire