The USD/CAD pair initially tried to rally during the course of the day on Monday, but as you can see struggled at the 1.28 handle yet again. With this, it looks as if the market is ready to pull back during the course of this consolidation. However, if we find some type of support below, we would be willing to buy. We believe that the 1.25 level below is essentially the “floor” going forward, and as a result we are willing to buy a pullbacks all the way down to that level to show proclivity to bounce. On the other hand, if we break above the top of the shooting star that would be very bullish as well.
