The USD/CAD pair initially fell during the session on Tuesday, but found enough support below the 1.26 level to turn things back around and form a positive candle. The candle in fact ended up being a hammer, which of course is a very positive sign. Because of this, we feel that this market is ready to head towards the 1.30 handle, and therefore we are buyers on short-term dips, as well as a break above the top of the range for the session. We have no interest whatsoever in selling this market as there is far too much support below.
