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The previous week saw gains in the USD/CAD pair as the market trying to break back above the 0.98 handle. However, those buyers were push back as it was a significant resistance level. This level was the bottom of the massive consolidation area, and as a result we should see massive resistance going forward. The fact that the week formed a shooting star of sorts doesn't hurt either, and as a result we think this market continues to grind lower.
One of the biggest problems we have this previous week is that the oil market fell apart the first couple days of the week. This of course worked against the value of the Canadian dollar, and as such we think that this little hiccup should simply be a retest of the 0.98 handle, and not much more. We are sellers of this pair.