The USD/CAD pair fell during the bulk of the day on Friday, slashing through the 1.08 handle. That area has been significant support, and the fact that we broke down below it is indeed a significant very sign in this marketplace. However, we are still just above a fairly significant uptrend line, so were not necessarily looking to sell with any conviction. Small positions to the downside could be taken we suppose, but at the end of the day the real money should be made off of the bounce closer to the 1.06 handle in our opinion. If we get below there, then things get ugly and the rout begins.
