The USD/CAD pair initially fell during the session on Monday, but found a little bit of support towards the end of the day. Nonetheless, with the Americans away celebrating Memorial Day, the liquidity in this particular pair would’ve been extraordinarily low. With that, we don’t read too much into the trading action on Monday and still think that this pair is susceptible for further weakness. Ultimately though, there is enough support below that we feel the market should continue to go higher in the longer term. Short-term weakness should be followed by value buying down near the 1.06 handle.
