The USD/CAD pair fell most of the session on Thursday, but I would not read too much into that move, simply because the Americans were away at Thanksgiving, and the Canadian simply would have done much of the same as the liquidity would have dried out of the market. With that being the case, the 1.06 level still continues to be crucial to this marketplace, and I am waiting for breakout on a daily close above that level in order to start buying, and buying in large size. This is because I see a clear path to the 1.10 handle, which of course is a nice move waiting to happen.
As for selling is concerned, I think that any pullback in the marketplace from this area will more than likely be a buying opportunity as there are plenty of areas of support below. 1.05 is an obvious one, but quite frankly I don't even know that we would get that far to the downside before buyers would step in and push his market much higher based upon the attitude of the market recently.
Freight train.
This pair has a long history of going sideways for quite some time, and then suddenly moving rapidly in one direction or the other. I believe that if we can get above the 1.06 handle, this will be much like a freight train, and be almost impossible to stop. The 400 pips all the way up to the 1.10 handle will be taken rather quickly. In my opinion, and any pullback, you see in that range will be a nice buying opportunity as well, or if you happen to already be long of the market, a good place to add to your position in order to maximize profits on which should be a very strong move.
Typically, I like to range trade this pair, but there are impulsive move from time to time they can really make you a lot of money. I believe we are about see one of these moves, and fully intend on taking advantage of that.
