The USD/CAD pair initially broke down to the upside during the session on Monday, but turned back around to test the 1.25 handle. This is the beginning of significant support, and we believe that it extends all the way down to the 1.24 handle. With that, we are buyers on a supportive candle just below, but we do not have it yet obviously. We believe that the market will then head back to the 1.28 handle, and then ultimately head to the 1.30 level. If we do break down from here, we believe that the floor in the market is at the 1.20 handle.
