The USD/CAD pair initially rose during the session on Monday, but turned around and fell fairly significantly. The resulting candle is a bit of a shooting star, but looks more bearish than that simple observation. In fact, we have fallen back down to the 0.9919 level, and as result we think that we are simply staying within the consolidation that we’ve seen for so long.
However, we get some type of agreement on the fiscal cliff we could have bullishness in the market that moves this pair down below the 0.99 handle on a daily close. At that point time, we would not hesitate to start selling this pair as it would essentially be heading back down towards the lows.
As for buying, we have no interest in doing so right now because we feel there is so much noise between here and the 1.0050 level. It isn’t until we see a daily close above that level that we will consider buying now.
Written by FX Empire