The USD/CAD pair initially rallied during the session on Wednesday, touching as high as 1.0225 before pulling back in forming a shooting star. Looking at this candle, it is being formed at an area where you would expect resistance to creep back into the marketplace. However, this is based more upon what’s going on in the oil markets than anything else, as those markets did in fact see a reversal of fortune in the middle of the session that had things looking a lot more bullish during the close. Having said that, we think that this is a temporary thing and that this market will more or less pullback to the 1.01 handle, and meet significant support in the general vicinity.
Written by FX Empire