[ForexNews]

Year end activity appeared initially to favour the USD with hopes of $/CAD running up to 1.0700. Those hopes faded quickly as a strong reversal on the 30th and 31st saw the pair move back to the familiar 1.0475-1.0575 range. A large recovery in Crude prices aided by a dispute between Russia and Belarus has the commodity markets buzzing as we are back above $80 once again. CAD rallied on this and was aided by large flows in EUR/CAD giving us a look below 1.0400. Key level to watch is right here as we have had a triple bottom at current levels which we have been unable to sustain since mid October. A close below these levels would open a retest of the cycle bottom in the low 1.0200's. Bear in mind the last attempt through 1.0200 failed and resulted in a run close to 1.0900 in 10 trading sessions. So if you are thinking of buying some USD on this run, it would be best to put in some orders now.