The USD/CAD pair initially fell hard during the session on Wednesday, but bounced enough to form a pretty nice-looking hammer. This hammer is at the bottom of the overall consolidation, and as a result we believe that ultimately the US dollar should continue to go higher. However, this consolidation holds true so far, so we don’t any reason to think that it will suddenly be broken to the upside easily either. We simply believe that there is a short-term buying opportunity, but recognize a getting above the 1.2750 level will be difficult at this point.
