The USD/CAD pair broke higher on Tuesday as oil markets drifted lower. We now must contend with the 1.33 level above and I think that’s where this pair is going. Short-term pullbacks will be buying opportunities, as soon as they show signs of support, and this will be especially true near the 1.32 handle. However, expect a lot of choppy conditions because of the nature of the oil markets which drive the value of the Canadian dollar. Furthermore, we will have a Canadian interest rate announcement during the session today, and that of course can come into play as well.
Written by FX Empire