The USD/CAD pair fell during the session on Monday, but found enough support near the 1.0270 handle in order to bounce and form a nice looking hammer. This hammer is essentially focused on the 1.03 area, and as a result we think that the market may shimmy its way up to the 1.04 handle between now and the nonfarm payroll report on Friday. That being the case, it is a possible buying opportunity for short-term buyers, but as far as longer-term is concerned, it’s going to be difficult to hang onto anything until we clear the 1.04 handle. Because of this, we are on the sidelines but fully recognize that the short-term scalpers may have a few opportunities between now and the end of the week.
Written by FX Empire