The USD/CAD pair had a back and forth session on Tuesday, essentially ending the day flat. We did managed to break down below the lows from the Monday shooting star, and that more than likely had people selling. However, we had suggested in yesterday’s analysis that perhaps waiting for a pullback to the 1.04 handle would be the way to go forward as we can buy there at a cheaper price. After today’s action, you can see why we were hesitant to short this market. On the other hand, we believe that more and more buyers will step in as we are getting close to breaking out to the upside for a longer-term move.
Written by FX Empire