The USD/CAD pair initially fell during the course of the session on Thursday, but found the 1.12 level supportive yet again. By doing so, and ended up forming a nice-looking hammer, and right where you want to see it. A break of the top of the hammer, we believe that this market probably heads back to the 1.14 level, and then possibly the 1.15 level after that. We have no interest in selling this market as the oil markets are most certainly working against the value the Canadian dollar, and the US dollar is one of the most favored currencies in the world right now.
