The USD/CAD pair broke higher during the session on Wednesday at the FMOC went ahead and announced a slight taper from the bond buyback program. Because of this, it appears that this pair is ready to go much higher, and as a result we believe that this market will hit the 1.10 level over the longer term. In fact, there isn’t a whole lot in this market the slow that move from happening, and with the illiquid conditions that we see of the next couple of weeks, it’s not a stretch to imagine that this parachute straight to that level. After all, it’s a very common for this pair to go sideways for a significant amount of time and then simply break in one direction or the other an impulsive move.
Written by FX Empire