The USD/CAD pair initially tried to rally during the course of the day on Tuesday, but fell significantly from there. There is still a significant uptrend line just below though, and as a result I feel that it’s only a matter time before the buyers get involved and with the Crude Oil Inventories number coming out today, that could be the catalyst for a potential rally as the Canadian dollar is of course very sensitive to crude oil itself. It is not until we break down below the 1.30 level below that I would consider selling.
