The USD/CAD pair rose a bit during the session on Monday as oil prices fell. The pair still has a lot of weigh hanging overhead, so this bounce does little to inspire confidence for the bulls though. The parity level continues to be resistive in this market, and should continue to be going forward as well.
On the reverse side, there is plenty of support below as well. The 0.99, 0.98, 0.9750, and 0.97 levels all can claim being supportive, so selling this pair is difficult. With the resistance level at parity stretching all the way to 1.01, this pair needs to breakout in order for us to trade it. The levels we need to see are above 1.01 on a daily close to buy, and below 0.9700 on a daily close to sell. Until then, expect a lot of choppy trading in this market.
Written by FX Empire