The USD/CAD has been range bound for some time, and the Thursday session looks as if the market is trying to refuse the concept of going back into the box. The parity level has been very resistive over the last several weeks, and it looked as if this was going to be the case again during the Thursday session, but the daily candle for the trading session ended up forming a hammer. This suggests that perhaps the bulls are still alive and kicking.
Even though we aren’t advocating a buy position at the moment, this would have us concerned if we were short of this pair. The 1.01 level above is actually what we need to see overtaken in order to go long, but this pair looks as if it wants to do just that. A break of the Thursday lows would give us enough comfort to sell though.
Written by FX Empire