USD/CAD Forecast March 3, 2015, Technical Analysis

The USD/CAD pair went back and forth on Monday, essentially using the 1.25 level as support. However, when you look at the overall marketplace, you can see that a descending triangle seems to be forming. The descending triangle suggests that if we can get below the 1.2350 level, we should continue down to the 1.20 handle. If we do so, that should be an excellent buying opportunity as the area is massively supportive. On the other hand, if we break above the top of the downtrend line of the descending triangle, it will negate that shape, and send this market looking for the 1.30 handle.