The USD/CAD pair fell during the session on Thursday and even managed to pierce below the 1.01 support level. The 1.01 support level was an area that we set must remain intact in order for us to remain bullish. It was severely tested during the session on Thursday, and we believe that a move lower and a daily close below the 1.0065 level would in fact signal that this market is ready to go much, much lower. Interestingly enough, the crude oil markets fell rather drastically while the Canadian dollar picked up momentum. It’ll be interesting to watch of these two markets play off of each other, but right now it does look like Canada is gaining a bit on the United States as far as the currency pair is concerned.
Written by FX Empire