The USD/CAD pair initially fell during the day on Friday, but as you can see found support at the 1.09 handle yet again, and bounce enough to form a hammer. The hammer suggests that there is buying pressure below, and that we will head towards the 1.10 level given enough time. If we can breakout above the 1.1050 level, we feel that the market will then be free to go to the 1.12 level, a target that we have had for some time. The fact that we formed a hammer only reiterates the idea that pullbacks will continue to be bought.
