The USD/CAD pair bounced off of the lows during the session on Thursday, breaking above the 1.0050 level. The candle is very bullish, but essentially a small blip on the radar when it comes to the fall that we have seen in this marketplace over the last couple of weeks. Having said that, we believe that you have to watch this chart at the moment though, and if we can get above the 1.01 handle on a daily close, we could consider buying at that point. More than likely though, the easiest trade will be simply to sell rallies as they come. Breaking down below the parity level now would be an even stronger signal to start selling as this candle did of course was very positive.
Written by FX Empire