The USD/CAD pair tried to rally during the session on Wednesday, but as you can see the 1.0380 level offered enough resistance in order to turn the market back around, and formed a shooting star. This shooting star looks very negative, and in fact is at the top of the recent range, so we believe that this is simply the market going to pull back and grind sideways for the meantime. This makes sense, the nonfarm payroll number comes out this Friday, and the two economies are heavily intertwined. With that being the case, we suspect that there will be no trading this pair at least until Monday morning.
Written by FX Empire