The USD/CAD pair broke out to the upside during the day on Tuesday, breaking the top of the hammer from Monday. We look as if we are ready to continue the consolidation, and that means that the 1.3450 level should offer a significant amount of resistance. Short-term pullbacks could calm, especially considering that today is the Crude Oil Inventories number coming out, and that has such a massive effect on the oil markets. Expect choppy back and forth type of consolidation in this pair like we have seen over the last several weeks.
Written by FX Empire