The USD/CAD pair had a fairly volatile session on Thursday as it initially rose, only to fall back and form a shooting star. The pair is sitting on top of support at the 1.0150 level, and as such it does look like the sellers are trying to assert their authority.
It should be noted that the light sweet crude markets had formed a hammer for the Thursday session, and that the two markets of course normally move with a strong negative correlation. If the oil markets gain on Friday, is very likely that we will see this pair fall. However, it should be noted that there is a lot of support under here, and as such it might be difficult to sell this particular pair.
On the other hand, a pair that we never talk about year could be a decent alternative. In a world where you have rising oil prices overall, a strengthening Canadian dollar, and a complete economic mess in Europe, perhaps a currency pair you should be looking at is the EUR/CAD pair. As a matter fact, it broke down below massive support at the 1.25 level during the Thursday session. It may serve you better to look in that market as you are selling one of the weakest currencies against one of the stronger ones. As for this pair, we will sit tight until we break the fresh new lows for selling, or break the top of the Thursday shooting star for buying.
Written by FX Empire