The USDCAD pair fell initially during the day on Friday, but it now appears that the uptrend line may catch this market and turning back around.

With this, and the fact that the 1.30 level coincides quite nicely with this market, we are buyers on a break above the top of the hammer as it should send this market to much higher levels, with the first real target being the 1.34 handle.

Keep in mind that oil markets tend to influence the Canadian dollar, so if they start falling, this pair should start rising.

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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