The USD/CAD pair rose during the session on Tuesday as it bounced from the parity level. We suggested yesterday that this could be the case, and it does in fact look like the level held as support. However, we don’t see a supportive candle at this point, and as such we are currently flat of this market.
The oil markets will have to be followed as well, but they do look particularly vulnerable at this point in time. If they do break down, this pair should rise over time as the Canadian dollar loses value. We don’t necessarily look to buy this pair, but we could see plenty of reasons not to sell it. With all this in mind, we are flat.
Written by FX Empire