The USD/CAD pair initially tried to rally during the day on Tuesday but found the 1.2850 level to be resistive enough to keep the market from going higher. In fact, we did up turning around to form a bit of a shooting star and with the Crude Oil Inventories number coming out today it’s likely that will see quite a bit of volatility in this pair. Add to that announcement the fact that we have the FOMC Statement coming out, and then you have the perfect combination for a lot of volatility. A break below the bottom of the shooting star is a nice selling opportunity as we are also at the 38.2% Fibonacci retracement level.
