The USD/CAD pair tried to fall during the session on Monday, but as you can see bounced hard off of the 1.04 handle in order to form a pretty decent looking hammer. That being the case, we feel that this market will continue to go higher, and have gone long of this market. The 1.05 level will be resistive, but if we can get above that then the 1.06 handle will be hit next. Ultimately, we think this market should continue to go higher, and if we can get above the aforementioned 1.06 handle, we would have quite a large move, probably to the 1.10 level.
Written by FX Empire