The USD/CAD pair fell below the 1.07 handle during the day on Thursday, but as you can see failed to continue much lower than that. Nonetheless, it does appear that the market is going to drift lower from here, and as a result we feel that this market could be shorted. However, we also believe that there is a good chance the buyers will stepping closer to the 1.06 handle, an area that is massively supportive both from a horizontal and eight trend line standpoint. With that, we believe that short-term traders will profit to the downside, but ultimately we should bounce.
