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The USD/CAD pair fell hard during the Thursday session and crashed into the support level at the 0.98 level. One thing you should know about this currency pair is that it is highly sensitive to the jobs number that is coming out later today. In a somewhat ironic twist, the Canadian dollar typically does better if the US employment numbers do.
This is mainly because the Canadians send 85% of their exports into the United States, and of course the United States citizens need to be working in order to buy these Canadian goods. Because of this, we think the entire move will be based upon the jobs number. If we get a four hour close well below the 0.98 level, we are willing to start selling this pair as it should be a continuation of the downtrend. This should be based upon a very strong US jobs number.
However, if we manage to bounce from here we think that we could be staying within the consolidation area between the 0.98 level and the 1.04 level. If we see this, we are more than willing to go long and hold on for quite some time as this area has been fairly reliable.