The USDCAD pair went back and forth during the course of the day on Monday, essentially forming a neutral candle.

Because of this, the market looks as if it isn’t ready to do much, but at this point time we feel that the easiest trade is to simply sell exhaustive candles after short-term rallies.

The 1.30 level above should continue to be the “ceiling” in this market, and therefore we feel that the sellers will return every time we get close to that area as well.

It is not until we break well above there that we would consider buying this market at the moment.

Editor’s Note: Equity investors/traders can use the CurrencyShares Canadian Dollar Trust (FXC, quote) ETF to take positions in the euro without a FOREX account.  The ETF looks to track the price of the Canadian Dollar (USDCAD), minus ETF fee. The fund seeks to reflect the price of the Canadian Dollar with the shares representing a cost-effective investment relative to investing in the FOREX market.

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