The USD/CAD pair fell during the session on Friday in order to retest the bottom again. The 0.98 level should continue to hold as support in the meantime, but it does give way we think this pair falls quite a bit farther – perhaps as low as the 0.94 handle.
Oil markets will certainly influence this pair, as will the “risk on, risk off” sentiment. Because of this, we feel that the signs point towards a real struggle, and this would actually favor a supportive candle. Until we see that candle however, we simply will not place a long trade. On the other hand, if we get a daily close below the 0.98 handle, we are more than willing to sell.
Written by FX Empire