The USD/CAD pair initially tried to break out during the session on Wednesday, but found the area above the 1.11 level to be far too resistive, and therefore we turned back around and formed a massive shooting star. The shooting star of course suggests that we are going to fall from here, but we think that it will simply be a return to the consolidation that we have seen recently. The 1.10 level is the pivot point for the consolidation as far as we see, recognizing the 1.09 level below as support, while the 1.11 level above is resistance. Ultimately though, we think this market is heading to the 1.12 level, therefore we are willing to buy supportive candles below.
