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The USD/CAD pair fell slightly during the session on Tuesday, but still remains above the 0.99 support level. The pair is obviously in a bearish trend, but we think that the move lower will be dependent on the oil markets, which are struggling with the $95 level and the light sweet crude variety.
If the oil markets can break above that level, we should see this pair break down. However, we have been overextended to the downside recently and a slight pause and rest makes sense. It is because of this that we are relatively benign on this pair, and are not in this market presently. On a daily close below the 0.99 level, we could consider shorting but the truth is there will be much easier trades out there.