USDCAD rallied from Monday to Thursday last week. However, on Friday it fell to give back it all back and even fell past the opening level from Monday.
There were more reasons for the fall. One thing was the news from USA about General Flynn. The second and a big reason for the fall was the good economic data from Canada. Employment figures overwhelmingly beat the expectation and GDP figures too showed positive results.
The pair is now in a support area that we can observe in various time frames.
Trading Preference
If the pair breaks below the support as shown in the chart, it could fall back to 1.2600 and even towards 1.2500.
In another development, US senators have passed a sweeping tax cuts bill, paving the way for Donald Trump’s first big legislative victory. This will be massively positive for USD. The support level coinciding with the positive news about the tax-bill could prove to be a strong support to drive the market up. That is why it won’t be a good idea to go short unless the support is truly broken.
