The USD/CAD pair went back and forth on Tuesday, showing a little bit of support at the end of the day in order to perhaps justify the positive candle that we had seen printed on Monday. We are just above a significant amount of support, and as a result we think that the market should continue to go higher over the longer term. With that, the 1.08 level should be targeted on a break higher, and then possibly the 1.09 area. If we close on a daily candle below the 1.06 handle, that would be an extraordinarily bearish sign, perhaps sending us as low as parity.
