USD/CAD fell during most of the session on Wednesday as the oil markets surged for most of the day. However, the fears out of Europe took over again, and this pushed many traders into the US dollar again. This of course bled into the USD/CAD pair. The parity level continues to be the focal point of this pair, but there is serious resistance at the 1.01 level above that would keep us from buying this pair, even with the hammer for the session.
The pair has serious support below and all the way down to the 0.9750 level. The pair will continue to follow the oil markets and headlines at the same time. The pair will continue to be choppy because of both forces currently affecting the markets. We are flat in this pair currently, and will continue to be until we close above the 1.01 level. A break below 0.9750 would have us aggressively short of this pair.