The USD/CAD pair had a very bullish week as the oil markets fell apart. The lack of demand around the world in a global slowdown will continue to punish the Canadian dollar as oil prices fall. The United States and China both have produced poor economic numbers at the end of the week, and this only puts an exclamation point on the bearish case in oil.
However, the 1.05 level above does in fact look resistive, so we think that any move higher will have to contend with this area. None the less, we still believe in the bull case, and are buying pullbacks in this pair.