The USD/CAD pair fell during the Friday session as the parity level was pierced. However, by the end of the session we saw parity hold in this suggests that perhaps we are ready for a bounce. Obviously, the oil markets are to be followed if you’re going to trade the Canadian dollar, but it can’t help but be noticed that the parity level held true even after a serious attack on Friday.
It looks like a bounce could be coming, and we think that’s all of will be. In order to go long for a longer-term trade with confidence, we would need to see the 1.02 level overtaken. In the meantime, we feel that a break of the Thursday highs should move this pair to look for the 1.0150 area. We would be more than willing to take our profits close to the 1.0150 area or even the 1.02 level at the first signs of resistance. This is simply because we don’t feel that it’s any bounce will be that strong.
Written by FX Empire