The USD/CAD pair gained during the session on Wednesday as the “risk off” rally came into play. However, we are still under significant downward pressure, and as you can see just below the 0.99 handle we see quite a bit of sellers stepping into the marketplace. Because of this, we certainly are not willing to buy at this point time and look at any rally that starts to fail as an opportunity to start selling again. With that being said, we think that any move higher than current levels will run into a ton of resistance at 0.99 or so. With that in place, we think that selling from present levels could open up the possibility of a 30 or 40 pip move lower.
Written by FX Empire