The USD/CAD pair rose during the session on Friday in order to test the parity level as resistance. The level did hold at the end of the day, but is currently being threatened. If we can get a daily close above the parity level by 10 or 15 pips, we would be willing to start buying this pair as we think we could be heading towards the 1.04 level. Needless to say, we need to wait until we get a daily close as this would be a countertrend breakout. As for selling is concerned, if we can break down below the lows from Wednesday, we would be very comfortable selling at that point as it is with the long-term trend.
Written by FX Empire