The USD/CAD pair fell during most of the session on Wednesday, but bounced off of the 200 day moving average in order to form a hammer right at parity. This is a confluence of several different things at one point time suggesting that this pair will continue to rise. With this in mind, we believe that a break of the top of Tuesday’s action would be a very bullish sign and have us buying this pair.
With the jobs numbers coming out on Friday, there is a good chance that this pair will be very reactive to it. In fact, the USD/CAD is one of our favorite pairs to trade during nonfarm payroll days as it reacts so well to that jobs number. If we had to make an educated guess at this point, it appears that the market is setting up for a disappointing jobs number on Friday.
Written by FX Empire