USD/CAD fell during a large part of the session, but bounced in order to form a hammer. This hammer is just after a shooting star at the 1.02 handle, and as a result it looks like we are having a real dogfight on our hands. The 1.02 handle of course is a “line in the sand” as far as we are concerned, and the market absolutely positively has to hold at this area in order for us to consider buying still. However, if we managed to break below the bottom of the hammer for the Wednesday session, we would become aggressively short and aim for the parity level.
Written by FX Empire