The USD/CAD pair attempted to rally during the Tuesday session, but as it did on Monday, the market lurched higher, and then fell. This is the second shooting star in a row that we have formed, and it does look rather week at this moment in time.
With the Federal Reserve meeting ending today, there is a likely chance that it will become a market moving event once the announcement comes out. If the Federal Reserve looks to ease its monetary policy further, this pair really could start to break down. Is because of this that we actually favor shorting this pair, and would do so on a break of the daily lows from the Tuesday session, but those of you that are bit more conservative may want to see how the market reacts to the impending announcement.
Written by FX Empire