The USD/CAD pair had an extraordinarily strong showing on Tuesday, closing towards the very top of the daily range. This candle shows significant strength, and as a result the 1.01 handle has significantly been overcome now. This also break the top of the hammer from the preceding session, which of course is always a very positive sign as well. Nonetheless, we need to pay attention to the oil markets as the Canadian dollar in the oil markets are so highly correlated. As the price of oil rises, the Canadian dollar does as well. Of course this works in both directions, so it’ll be interesting to see how this plays out. Nonetheless, based upon the close that we saw at the end of the day on Tuesday, is very likely that we will see this market continue higher.
Written by FX Empire