The USD/CAD pair fell during the day on Tuesday, as we continue to press the 1.26 level below. That’s an area that causes support, but given enough time we should break down below in order to find even more bearishness. The 1.25 level is a large, round, psychologically significant number, so it’s likely that it will be an area where we could see a bounce from. Rallies at this point in time should be selling opportunities on signs of exhaustion as well, so having said that we believe that the market should continue lower as long as we stay below the 1.30 handle.
