The USD/CAD pair shot straight up during the session on Wednesday as you can see, but found the 1.04 level rather resistive. This essentially carves out the consolidation area that we had anticipated being there, and as a result we feel that the market simply is still in the same state that it had been in before. We need to breakout above the most recent high in order to go long, but we think that move will only offer a trip up to the 1.05 handle. As far as selling is concerned, there could be a short-term opportunity, but we are a little bit hesitant because of the length of the green candle for the Wednesday session.
Written by FX Empire