The USD/CAD pair shot straight up during the session on Tuesday as the oil markets fell. The “risk off” attitude came back into the markets, and the Dollar was bid up against most currencies, with the Canadian dollar being no exception.
The parity level has been very resistive, but it looks like the market is about to slice through the resistance.
The market is now back above the 200 day EMA, something that it hasn’t been able to claim since the very start of the year. The market looks as if it breaks out if it closes above the 1.01 level. Until then, we are waiting to see if the bulls can make things happen. Selling is possible, but we need to see weakness – something that hasn’t happened at all.
Written by FX Empire