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The USD/CAD pair fell for much of the week over the last five sessions, but managed to bounce off of the 0.9850 support level in order to form a hammer. It does in fact look like we are about due for a bounce in this market, as we are at the bottom of the massive consolidation zone between 0.98 and 1.04 or so.
Looking at this, and the fact that the oil markets formed a shooting star on the weekly chart, it wouldn't surprise us to see the Canadian dollar lose a little ground over the next couple of weeks. In fact, this would simply be a return to the consolidation area that we have been in for so long. On a break of the highs from the previous week, we are willing to go long this pair.