The USD/CAD pair initially tried to rally during the course of the session on Friday, but found enough resistance near the 1.31 level to turn things back around and form a shooting star. The shooting star is immediately preceded by a hammer, after a slight break out above the 1.30 handle. This is a massive level on the longer-term charts, so it looks like we are simply going to go back and forth before building up enough momentum to continue to the upside. We have no interest in selling this market, and as a result we feel that buying on dips going forward will be the way to trade.
