The USD/CAD pair initially tried to rally during the day on Thursday but then ended up selling off. Quite frankly, we believe that this market is simply trying to build up enough momentum to break above the major resistance at the 1.40 level just above, so a pullback would necessarily be a huge surprise. Ultimately, that pullback is probably just the market trying to finally build up enough buying pressure to break out though, so we have no interest in selling. We like pullbacks and show signs of support, and of course a break out above the aforementioned 1.40 handle.
