USD/CAD Forecast January 12, 2014, Technical Analysis

The USD/CAD pair bounced off of the 1.18 level to find support and show strength during the session on Friday. Ultimately, the market will more than likely head to the 1.20 handle, given enough time. We believe the pullbacks are buying opportunities, and that there is a massive floor in this market at the 1.15 handle. With that, the market should grind its way all the way to the 1.20 level and the pullback could actually end up being a momentum building exercise. After all, you need to build up momentum in order to break out to the upside, and with that we are bullish only.