The USD/CAD pair went back and forth during the course of the day on Monday, but still looks very positive to us. We believe that the market continues to grind its way slightly higher, as we will need some type of momentum to break out to the upside and start reaching towards the 1.35 level. We believe that any pullback from here will be supported all the way down to the 1.30 level, which of course is a large, round, psychologically significant number. Breaking above there was a significant bullish move, and as a result we believe that the buyers are still very much in control.
