USD/CAD Forecast September 1, 2014, Technical Analysis

The USD/CAD pair fell during the bulk of the session on Friday, but then turned back around and form a nice-looking hammer. This hammer sits right at the 1.0850 region, which makes us think that the market should continue to go higher. A break above the top of the hammer has us aiming for the 1.10 level, which of course has been massively resistive. We don’t look at this is a longer-term trade quite yet, and believe that a simple “smash and grab” type of scenario might be what we are about to see.