The USD/CAD currency pair rose during the session on Tuesday as the 0.98 handle again acted supportive. We still believe that this pair will tread water between the 0.98 and 0.9850 levels, and as such we are hesitant to get involved.
As the two economies are intertwined, the nonfarm payroll numbers on Friday will have a dramatic affect on price action in this market. Because of this, we are very hesitant to get involved in this pair until we make a massive move higher, which would be closing above the 0.9950 level, or a massive move lower which would be a daily close below the 0.98 handle.
More than likely, we think that this pair will continue to bounce around in this 50 PIP zone. With this in mind, we are simply waiting out the market until after the jobs number and we will follow accordingly.
Written by FX Empire