The USD/CAD pair fell through the 0.98 handle on Friday as the jobs number in the United States came out weak. This should signal further monetary easing by the Federal Reserve, and as such the commodity currencies all got a bid. This of course includes the Canadian dollar, and that is the reason we broke down through the 0.98 handle finally.
However, it should be noted that there is a little bit of support at this point in time, and we are waiting for a break of the 0.9750 handle in order to start shorting this pair. If that happens, we think the 0.95 handle is almost a given and could happen relatively quick. Below that, we see the 0.90 handle is a possibility as well. As for buying this pair, we need to see a break above the 0.9950 level.
Written by FX Empire