USD/CAD Forecast March 25, 2015, Technical Analysis

The USD/CAD pair initially fell during the course of the day on Tuesday, slicing below the 1.25 handle. However, there was enough support below to turn things back around and form a nice-looking hammer. This of course has us buying on a break above the top of the range, and we believe at that point time the market should continue the consolidation that we had seen previously. We think that if we can get above the 1.28 level eventually, the market will then test the 1.30 level, which of course is very vital. If we break down below the bottom of the candle for the Tuesday session, we have no interest in selling as we believe this market will continue the uptrend over the longer term.