The USD/CAD pair fell initially during the session on Tuesday, but found enough support to turn things back around and form a hammer. The hammer sits just below the 1.0750 level, which of course is a somewhat supportive level to begin with. Nonetheless, the breakdown below the 1.08 level is a negative sign, so even if we bounce from here a resistant candle in that region would not surprise us. In fact, that resistant candle would be reason enough to start selling. However, and impulsive candle back above the 1.08 level would have us rethinking the direction.
