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The USD/CAD pair fell during the session on Tuesday as oil prices rose yet again. The 1.01 level continues offer support, but only just barely. We believe that a break below the hammer lows from the early part of July signals a move down to parity in this market. It is below the parity level, that things get very interesting very quick.
If we can manage to break below the parity level, we think this pair makes another run toward 0.97, and possibly even lower. As for buying this pair, it's going to be very difficult to do that in till we manage to break above Thursday's shooting star as it would show a sign of momentum shifting in this pair. If we were to that, we would calculate that the parity level will be seen fairly shortly.