The USD/CAD pair initially fell during the Thursday session, but bounced in order to form a slightly positive candle for the trading day. However, we are still well within the consolidation tolerances, so this move really didn’t send much of a signal either way. Looking at this chart, we still see 0.9800 as the bottom of the consolidation area the goes all the way up to the 0.9950 on the top. Because of this, we are fairly neutral in this pair, but do recognize that a serious breakdown of the 0.98 handle would be extraordinarily bearish and have us aggressively selling. With today being nonfarm payroll Friday, this pair will be especially sensitive to that announcement.
Written by FX Empire