The USDCAD pair fell during the course of the session on Tuesday, as we are now well below the 1.28 handle.

That being the case, the market should then go down to the 1.25 handle.

Ultimately, it looks as if the market should continue to face bearish pressure, and short-term rallies should be selling opportunities going forward.

At this point in time, we believe that the market will continue to go lower mainly because of the oil markets showing signs of strength, and of course the US dollar falling in general against most currencies.

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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