The USD/CAD pair broke down during the course of the day on Wednesday, as we have seen far too much in the way of resistance at the 1.40 level. That’s not a surprise though, it is of course a large, round, psychologically significant number after all. Because of this, we believe that this pullback should end up being a nice buying opportunity though, and a supportive candle has us going long as it offers quite a bit of value in the US dollar at that point. The uptrend is very strong, and with oil prices continuing to fall over the longer term, we have no interest in trying to short.
