The USD/CAD pair initially fell during the session on Wednesday, but as you can see found support somewhere near the 1.0225 level. This formed a hammer, and it does in fact suggest that we are going to continue to climb in this market. If that’s the case, we should continue to see US dollar strength overall, as the Canadian dollar typically will strengthen in good economic times, so this is obviously a US centric story. If we can get above the 1.04 level, we think this market could really start to gain steam going forward. However, we recognize the fact that a break of the Wednesday candle to the upside could see this market heading towards 1.03 in the short term.
Written by FX Empire