The USD/CAD pair initially fell during the course of the session on Friday, but found enough buying pressure underneath to turn things back around and form a hammer. The hammer of course is a very bullish sign and we now feel that this market could continue to break out to the upside. If it does, we feel that the market will target the 1.32 level next, and then perhaps the 1.35 level given enough time. We look at pullbacks as potential buying opportunities and the 1.28 level is massively supportive. As long as the oil markets are soft, the Canadian dollar will not gain overall.
