The USD/CAD pair initially surged during the session on Wednesday, but was repelled at the 0.99 handle. In fact, the sellers came in so strongly that we formed a massive shooting star. This suggests to us that this pair is ready to start going lower, and the US dollar looks weak across the board. This of course confirms our suspicion about this pair, and we would start selling at about 0.9750 as this market continues its overall downtrend. As for buying, we need to get above the 0.9950 handle in order to go to the 1.04 level which was the previous resistive top.
Written by FX Empire