The USD/CAD pair broke down a little bit during the Friday session, plunging below the 1.02 level. However, we think this market will find quite a bit of support just below at the 1.01 handle, and in fact we are counting on it. Because of this, we think this market will prove the previous resistance area as a good launching point for fresh longs. The Bank of Canada has recently stated that monetary policy will run much looser than expected, and for much longer. Because of this, we believe that the Canadian dollar will continue to depreciate. However, we need to see some type of supportive candle in order to start buying.
Written by FX Empire