The USD/CAD pair fell during the session on Wednesday, crashing into the 1.3250 level.

The market has been consolidating for some time, and the market looks as if it is trying to test that support area.

If we can break down below there, the market could go much lower. Alternately, if we see a supportive candle that could be an opportunity to start buying again as we have been consolidating for the last several weeks.

Either way, I expect this market to be very choppy, as oil markets have been very volatile lately.

Editor’s Note: Equity investors/traders can use the CurrencyShares Canadian Dollar Trust (FXC, quote) ETF to take positions in the euro without a FOREX account.  The ETF looks to track the price of the Canadian Dollar (USDCAD), minus ETF fee. The fund seeks to reflect the price of the Canadian Dollar with the shares representing a cost-effective investment relative to investing in the FOREX market.

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