The USD/CAD pair fell gained substantial ground during the Friday session, but as the congressional leaders came out and essentially “held hands” at the press conference in late Friday trading, the pair fell as risk appetite increased. This printed a shooting star, but it must be stated that it is sitting on top of a lot of support. It is because of this that we are not impressed by this candle, and think that it could possibly be a “sucker’s play.”
We are not impressed by any selloff in this pair until we get well below the 0.99 level on a daily close, and as such we are simply monitoring it right now. We think that supportive candles should be bought, and if we managed to break the top of the shooting star for Friday, that would be a very bullish sign. In an uncertain world, the US dollar always reigns supreme.
Written by FX Empire