The USD/CAD shot through the parity level on Tuesday as the flight to the Dollar continues around the world. The oil markets will be very influential at this point in time, and the Light Sweet Crude markets have formed a hammer for the second day in a row at the all-important $95 level.
If oil can stay above the $95 level – this pair falls. If we get a breakdown in oil, this pair should rise. However, we see a lot of resistance all the way to 1.01, and won’t be buying until we close above it.
Written by FX Empire