By FXEmpire.com
The USD/CAD pair fell during the Thursday session as the 1.01 support level finally gave way. This market does look like it said to return to the parity level to test it for support, and as such we feel that this is a great opportunity for short-term sellers. However, we think the parity level will certainly cause a lot of issues in the future, and as such we aren’t looking for a big trade at this point.
Oil markets did in fact breakout during the session, so this suggests that the Canadian dollar will gain overtime. However, that parity level has been so supportive and resistance recently that we are hesitant to hang onto trades for much longer than that.
As for buying this market, we need to see a breakout above the 1.0250 level in order to be convinced of a momentum change. If we can get above that area, we think that the 1.04 and 1.08 levels will be targeted thereafter.
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Originally posted here
