The USD/CAD pair went back and forth during the course of the session on Monday, testing the 1.2450 level. With that, it appears that the support is going to continue to hold up, and if we can get above the 1.25 level, we are buyers of the marketplace and willing to aim for the 1.27 handle. We believe that the US dollar should continue to strengthen over the longer term, but quite frankly the oil markets are not cooperating at the moment. Ultimately, we believe that this pair could very easily break out and head to the 1.30 handle.
