The USD/CAD pair tried to rally during the session on Monday, but as you can see failed during the day in order to form a shooting star for the second day in a row. This pretty much solidifies the idea that the 1.05 level will be resistive, and a break below the bottom of the candle for the Monday session should see this market pulled back to the 1.04 handle. It is down there that we expect to see plenty of support though, so instead of shorting, we actually want to see a supportive candle down there so we can start buying again. Alternately, if we managed to break above the top of the Friday session, we would be buyers as well.
Written by FX Empire