The USD/CAD pair initially fell during the session on Friday but found the 1.12 level to be supportive enough to form a hammer. The hammer of course suggests that the market is going to bounce from here, but ultimately we believe that the market continues to go higher, heading to the 1.14 handle in the short-term. Even if we fall from here, we believe that the market will be supported all the way down to at least the 1.11 handle, and probably even lower than that. Oil markets presently are getting no help to the Canadian dollar, and we do not see that changing.
