The USD/CAD pair initially tried to rally during the session on Monday, but then turned back around to fall rather significantly. We did not make a fresh new low though, so this point time we believe that the market simply is going to be a bit too noisy to be bothered with. If we can break down to a fresh, new low we believe that the market will then head to the 1.20 handle, where it should find buyers based upon the large, round, psychologically significant number. Watch the oil markets, they look like they’re trying to break out and that could send this market even lower.
