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The USD/CAD pair rose during the session on Thursday as the support continues to build around the 0.99 handle. The pair is currently towards the bottom of a larger consolidation zone between 0.98 and 1.04, and as such we think that a bounce is certainly coming. The 0.9950 level needs to be cleared in order for us to go long, but we would as this pair certainly seems to be consolidative over the longer-term.
If we see the Federal Reserve Chairman fail to mention anything about quantitative easing during the speech later today and Wyoming, there's a good chance of this pair pops. If he does explicitly say that quantitative easing is coming, which is very unlikely, and then of course we could see a meltdown which would break through the bottom of the two hammers from the last two weeks giving us a great sell signal. Until he has is speech though, it's difficult to take the trade in either direction.