The USD/CAD pair finally break out of consolidation during the day on Wednesday, slicing down to the 1.23 handle. Because of this, we feel that the market is then going to head to the 1.20 level, as it is the next major support area. It looks like we may get some significant bearish pressure in this pair for the short-term, but we repeat that this is simply a short-term trading opportunity as far as we see. We have no interest in buying this pair quite yet, but would have to rethink that if we got back above the 1.24 handle. In the meantime, it looks like we are going to selloff.
