USD/CAD Forecast February 23, 2015, Technical Analysis

The USD/CAD pair fell during the course of the session on Friday, but then found support below in order to break above the 1.25 handle. The resulting candle is a hammer, and that suggests that the market is going to go much higher. However, we also recognize that there is a significant amount of resistance, so we need to break out above the top of this hammer in order to serve buying. We pullback from here, we will simply look for support below as we believe it will signify value in the US dollar.