The USD/CAD pair try to break above the 1.04 handle during the session on Monday, but as you can see failed and fell from that point. This suggests that this market is going to return to the 1.0250 level, and on a break of the lows from the session on Monday, we think that’s exactly what will happen. On the other hand, if we get above the 1.0450 level, we think that is a breakout significant resistance, and would be buying at that point in time. In the meantime, we would be very hesitant to be involved in this market as we think choppiness could be the theme here.
Written by FX Empire