USD/CAD rose on Friday as traders sold off the risk currencies around the world. The oil markets dipped as well, and this always spells trouble for the Loonie. The pair remains below the parity level however, (a major resistance area) and as a result – we aren’t ready to buy just yet. In fact, our signals have been coming from the CL and COIL contracts lately. If the CL (Light Sweet Crude) can break above the $90 mark, this pair falls hard. If it cannot, and breaks below the $80 mark – this pair becomes a buy, and will more than likely rally somewhat significantly.
Written by FX Empire