USD/CAD Forecast January 30, 2015, Technical Analysis

The USD/CAD pair broke higher during the course of the session on Thursday, cleanly breaking well above the 1.25 handle. With the oil markets looking is soft as they do, the Bank of Canada surprising the market with an interest rate cut last week, and the US dollar being strong, we have a bit of a perfect storm in this market as the pair should continue to go much higher. In fact, we are targeting the 1.30 level now, realizing the dips should be buying opportunities. However, the 1.30 level was the absolute top during the financial crisis and was tested multiple times for resistance and held.