The USD/CAD pair initially try to rally during the session on Monday, but turned back around based upon the shooting star that we had formed on Friday. That selling pressure push the market lower, but we are still above the 1.10 handle. This level is the basis for a supportive zone, and as a result we are not ready to start selling quite yet. In fact, we are looking for some type of supportive candle in order to go long as we think the market should go back towards the 1.12 level. Above there, we feel the market goes to the 1.15 handle.
