The US/CAD pair shot straight up during the session on Monday, but as you can see was be back down in order to form a perfect shooting star. Will we find particularly interesting about this shooting star is that it’s based on the 1.05 handle, an area that has caused significant resistance previously. Although we have broken out above the 1.04 handle which was the immediate buy signal previously, we believe that a pullback is in fact coming. Nonetheless, we do not want to sell this pair, rather we look at buying again somewhere closer towards the 1.04 handle as we do expect support to show up there. On a supportive candle closer to that handle, we are much more interested in buying then selling presently.
Written by FX Empire