USD/CAD Forecast January 23, 2015, Technical Analysis

The USD/CAD pair did very little during the session on Thursday, which actually is a good sign considering that it had been so impulsive beforehand. In other words, we did not pullback after that massive move higher. Because of this, we believe that this market will continue to go higher and head towards the 1.25 level. Pullbacks offer buying opportunities if we get them, but it is just as likely that we simply go higher. This pair tends to be fairly impulsive overall, so seen that again really wouldn’t be that big of a surprise. We believe that the 1.20 level continues to be the floor in this market.