The USD/CAD pair initially fell but then turn right back around to form a bullish hammer. Ultimately though, it’s likely that the market will continue to show significant amounts of volatility, but as oil markets are pulling back it makes sense that the US dollar could continue to gain in this particular market. However, expect choppiness, and not much more than short-term trading opportunities in this particular market. The 1.30 level below continues to be supportive, while the 1.32 level continues to be resistive. Ultimately though, we will have to break out so pay attention to oil markets.
