The USD/CAD pair broke down significantly during the week, slicing through an uptrend line. That is a very negative sign, and this being the case it looks as if the 1.30 level underneath is massively supportive. This is a large, round, significant number, and that being the case it looks as if the market will be making significant support in the area. Pay attention to oil, because quite frankly if it starts falling apart again, that could turn this market right back around. Recently, we have seen Canadian bonds being bought while US bonds are being shorted, and that is a main driver of the pair as well. A breakdown below the bottom of the weekly candle could send this market looking for the 1.25 handle.
USD/CAD Video 03.7.17
This article was originally posted on FX Empire