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USD/CAD had a fairly wild ride during the previous five sessions as the market initially dipped down below support at the 1.0150 level, only to bounce back of the form hammer by the end of the Friday session. Granted, this was helped along by the poor jobs number out of the United States on Friday, but the fact is that demand for crude oil should begin to fall as is becoming increasingly apparent that the economic situation worldwide is slowing down.
With this being said, a break at the top of the hammer for the weekly candle has this market running towards the 1.03 level, and then the 1.0450 level if it can get enough momentum. As for selling, a break of the bottom the hammer would be a very bearish turn of events and could see the market had towards parity. Personally, after the jobs number we believe that the Federal Reserve will be on hold for a while as far as quantitative easing is concerned and we do prefer the long trade.