USD/CAD had a bearish day during the Tuesday as the oil markets rose. The CAD is highly sensitive to the price of oil, and as such will rise when the markets in crude rise. The pair fell as traders continue to buy up oil, sell the Dollar, and race towards the most obvious place on this chart – parity.
The parity level seems to be like a magnet for this pair, and we think it should continue to act as such. Because of this, we think the pair will have a hard time breaking through to the downside with any serious conviction, but if it did – we would be sellers. The reality is that the market will more than likely be very range bound between 0.99 and 1.03 going forward.
Written by FX Empire