USD/CAD Forecast January 19, 2015, Technical Analysis

The USD/CAD pair broke out during the session on Friday, but found enough resistance above the 1.20 level in order to turn things back around and form a shooting star. The shooting star courses negative, but at the end of the day there has been so much upward pressure that we feel that this is simply a sign that the market isn’t quite ready to break out to the upside again. Pullbacks at this point time should be buying opportunities, and we will treat them as such, buying supportive candles at lower levels. On the other hand, if we break above the top of the shooting star from Friday, that is also a signal to start buying.