The USD/CAD pair went down slightly last week, plummeting at 1.30 points. The currency pair then bounced back from the support barrier, and if the pair goes above the hammer formed then this would mean a very bullish sign for the USD/CAD, and the market would be able to go over the 1.35 trading range.
The oil market is wielding its influence over the financial market, especially since the CAD has become a proxy currency for commodity traders. However, the oil market in general does not look very promising, and speculators are stating that it is only a matter of time before oil prices would take a turn for the worst. This might cause the USD to increase in relation to the CAD in the long-run.
The market is generally expected to go above the 1.35-point level. However, investors are not expected this to occur anytime soon. Pullback levels might be able to offer some measure of projected value and support, given that the market stays above the 1.30 trading range. Buyers are expected to always return to the commodities market, and an upward pressure for the currency market is now felt especially for the possible breakout which could happen at any point now that the volume has returned to the foreign exchange market.