The USD/CAD pair broke higher during the course of the session initially on Tuesday, testing the 1.28 level. This area has been massively resistive in the past, and as a result it makes sense that we continue to sell in that general vicinity. However, if we break above the 1.28 handle, this market should continue to go much higher. There is a Canadian interest-rate announcement during the session today, so quite frankly we feel that this market will be volatile. On the other hand, if we fall from here we feel that the market will find support somewhere near the 1.2650 level, offering value.
