The USD/CAD pair broke higher during the session on Wednesday after initially falling. Because of this, we ended up forming a hammer and then of course is a positive sign. The ultimately though, we feel that this market goes higher overall and therefore we look at dips as potential buying opportunities with the 1.15 level as being the “floor.” The oil markets course are not helping the Canadian dollar at all, and we believe that the US dollar will continue to strengthen over the longer term anyway. We are now targeting the 1.18 handle.
