The USD/CAD pair fell during the session on Thursday in order to test the lower limits of the hammer formed on Wednesday. The pair happens to be sitting right at the 200 day exponential moving average, and as such it should be reasonably supported at this point in time.
Looking at this currency pair, it appears that we are trying to break out and above the parity level. However, this is obviously been a bit of a struggle and two days jobs number of the United States will more than likely be a rate determining factor in whether or not we can. If the job is poor, typically this pair moves higher.
Since we know that was when happen, we have to be on the sidelines. However, we would not hesitate to buy this pair if we got the 1.0050 or so. Selling is going to be a bit trickier, as there is a bit of support cluster underneath and we would more than likely be more comfortable selling below the 0.99 handle.
Written by FX Empire