The USD/CAD pair did very little during the session on Monday, which isn’t a huge surprise considering that the Europeans were celebrating Easter Monday. It’s a bank holiday on the continent, so therefore there would have been very little liquidity. This is a market that tends that shop around anyways, so it’s really not overly interesting that we didn’t do much.
On top of that, the 1.10 level is an area of interest to both buyers and sellers, so it makes sense that the market would hang around in this general vicinity. After all, we fell significantly and now we are retesting this area to see if it could be resistive. However, the weekly candle from two weeks ago was a hammer, which of course suggests that the buyers are coming back into play. I believe that this market does in fact go higher given enough time, but recognize that it could be a bit of a fight to get the move going.
Continuation of the move. Eventually.
I believe that there will be continuation of the move that we had going higher eventually. In fact, I believe that we are simply going to continue the consolidation that we’ve been in for some time as well. With that, I am bullish of this pair but I want to see the market break above the 1.1050 handle in order to clear the next barrier in order to go to the top of the larger consolidation area at the 1.13 level, which I believe is the next target.
If we do pullback from here, and until we get below the 1.0850 level, I think that there will be plenty of buyers willing to step in and support the market. Going forward, I think that the 1.13 level giving way will allow the market to head towards the 1.15 level, which is my ultimate target. This is one of those markets though that will go sideways for a long period of time, and then suddenly make the move. It wouldn’t surprise me at all that we see that again, so patience will be needed.
