The USD/CAD pair fell during the session on Tuesday as the oil markets broke out above the $105 resistance level. The pair continues to be bearish overall, and as a result this market is only sold by us at the moment. The 0.98 level below looks to be very supportive, and as such we are willing to either wait for a rally to fade near the parity level, or selling on a daily close below the 0.98 handle.
The oil markets will lead the way, and if it continues to climb this pair could fall far below. On top of that, the Non-Farm Payroll number coming out on Friday will almost certainly move this pair as well. Because of this – we could be waiting a few days to get our signal.
Written by FX Empire