The USD/CAD pair fell hard during the session on Friday after the jobs number in America came out have a strong is anticipated. This pair is a volatile pair every time this announcement comes out, so doesn’t really surprise me that we have that happen. However, the 1.24 level below is massively supportive, so it doesn’t surprise me at all that the market stopped in that general vicinity. If we can find some type of supportive candle in that general vicinity we are at, I think that the perfect buying opportunity as we have been consolidating between the 1.24 level on the bottom, and the 1.28 level on the top recently. It’s a nice well-defined range, which you get quite a bit in the USD/CAD pair, as the market tends to go sideways for long periods of time. After all, the tool currencies and economies are very intertwined.
Looking for supportive candles
I’m looking for supportive candles at the moment, and although the Friday candle did show quite a bit of buying towards the end of the day, we did not get the right candle for me to start risking money in this market. I believe that ultimately though we will continue to go back and forth and the oil markets of course are doing no major favors for the Canadian dollar at the moment. The US dollar continues to strengthen in general, and although we may get a little bit of a pullback in general, I think that only offers value at lower levels such as the 1.20 level. I have no interest in selling, and I think that given enough time we are going to try to test the 1.30 level above. That was where we stopped after the financial crisis, and tested that area at least four or five times. That area held true, so I think that the market will be attracted to that number yet again. If we can get above there, this is a suddenly buy-and-hold type of market.
