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The USD/CAD pair had a fairly quiet session during the Wednesday trading day, especially when you consider the fact that the oil markets were rocking to the downside. The promises of Saudi oil ministers to produce more crude for the markets brought prices down in the oil pits quite drastically during the session. However, the Canadian dollar held its ground fairly well and this bodes well for the downtrend going forward.
Because of this, we look at the 0.98 handle as very significant. It was support of a massive consolidation area recently, and we think it should be resistance going forward. If we get some type of week candle in that area, we are more than willing to start selling. As for buying this pair, we wouldn't do it until we get above the 0.9950 handle.