The USD/CAD pair bounced hard on Thursday as the 0.98 handle came into the mix in order to give the pair a lift. The recent consolidation did in fact breakdown in order to test the handle, but we warned you previously that the handle would more than likely be the real support behind the range. With this being said, the pair looks as if it is looking to reenter the previous consolidation area between 0.9850 and 1.01 or so.
We like buying a break of the top of the Thursday range, but only for a short term trade. After all, this overall trend is lower, but this looks like a good short term opportunity. Selling will be our strategy if the pair closes below the 0.908 handle on the daily chart.
Written by FX Empire