The USD/CAD pair fell rather hard during the Friday session, but managed to close right at the 1.02 level. This is the area that we have been watching and concluded that “bottom” of support. If we continue lower, and break the lows of the Friday session, we believe this market will head towards parity. On the other hand, we could get a little bit of a bounce from here, and move back towards the 1.04 handle. On balance though, we think things look pretty bad for this pair, and fully expected to break down.
Written by FX Empire