The USD/CAD pair rose during the session in reaction to an overall US dollar rally. The Federal Reserve Chairman spoke in front of Congress during the day suggesting that monetary policy could be changing relatively soon. The fact that monetary policy in the United States could tighten soon will of course bring up the value of the US dollar against most currencies, and the fact that the Canadian economic numbers lately haven’t been a strong certainly gives this market a real shot at breaking out to the upside. We believe that buying this market right now is the appropriate way to trade, and that a move above the 1.04 handle would be massively bullish as the market would eventually try to hit the 1.08 level, and then the 1.10 level.
Written by FX Empire