The USD/CAD pair initially fell during the day on Monday, testing the 1.30 level for support. It did in fact find it there, and therefore we bounce enough to form a hammer. The hammer of course suggests that there are buyers below, and as a result we would be buyers on a break above the top of the candle. We believe that the “floor” in this market is somewhere near the 1.28 handle, and with the oil markets looking so soft, we believe that we will break out to the upside sooner rather than later.
