USD/CAD rose during the session on Friday as the triangle that contains this market continues to work. The candle for the day looks reasonably strong, but until we get a breakout to the upside of the triangle, buying isn’t recommended. The breakdown below the bottom line of the triangle would suggest a serious move as well, but in the meantime, this is a difficult and choppy pair to trade. The 1.02 area seems to be a bit of a “fulcrum” in the pair recently, but in general, we think there are many other pairs out there that are easier to trade – so we are avoiding this pair until we get out of the triangle.
Written by FX Empire