The USD/CAD currency pair shot straight up during the session as the “fear trade” came back into the marketplace on Wednesday. However, by the end of the session you can see that quite a bit of the pair pullback, and as a result although we broke out to the upside, this isn’t have convincing as it once was earlier in the day. However, the Bank of Canada did suggest during its policy meeting speech during the day that the Canadian economy is still fairly weak, and accommodative policy should be continued, if not added to. With that being the case, it appears that the market will continue higher overall and as a result we will look for shorter-term supportive candles the start buying the US dollar.
Written by FX Empire