USD/CAD Forecast January 7, 2015, Technical Analysis

The USD/CAD pair rose during the session on Tuesday, trying to break out to the upside. If we can break above to a fresh, new high, we believe this market will continue to go much higher, probably offering an opportunity to continue on to the 1.20 level given enough time. However, you have to keep in mind that the Americans and Canadians both have employment numbers coming out on Friday, so choppy conditions may be the norm going forward. With that, we believe that short-term pullbacks will be buying opportunities, but you should keep your position small and short induration.