The USD/CAD pair fell for most of the session on Friday, but bounced significantly in order to close above the 0.9950 level. The candle looks quite a bit like a hammer, and it should be noted that the 0.99 support level held as support. If we break above the parity level and the highs from the last couple sessions, we think this pair races back to the 1.04 level which was the top of the recent consolidation area. We also note that the Canadian jobs report was pretty bad on Friday, at the same time the American one was strong. With that mix, it makes sense of this pair not only found support, but starts to climb higher. We are buyers only, not sellers at this point in time but need to see a move above the 1.0030 level in order to initiate are long positions.
Written by FX Empire