The USD/CAD currency pair fell during the session on Wednesday as the Federal Reserve Chairman announced that the central bank would continue to engage and asset purchases, as well as aim for specific employment target in order to make a decision as to whether or not to continue the program. This is much more flexible and open-ended that we had originally seen, and as a result the US dollar lost a lot of ground against many of the world currencies.
This pair already looked fairly week going into the session, and as a result we have broken down and it looks like this market is ready to continue much lower. On a break of the lows from the Wednesday session, we suggest this market will fall to the 0.97 handle. As for buying, we would be very leery of doing that right now.
Written by FX Empire