USD/CAD Forecast July 16, 2015, Technical Analysis

The USD/CAD pair broke out to the upside during the session on Wednesday as the Bank of Canada cut interest rates by 0.25% again. With this, it appears that the soft oil markets are really serving to do a number on Canada, and as a result it makes sense that the pair finally broke above the 1.28 handle. The next major resistance barrier is the 1.30 handle, as it is where we stopped after the financial meltdown years ago. If we get above the 1.30 level, this pair will continue to go much higher over the longer term. That is essentially the “last stand” of the Canadian dollar. At this point in time though, we are buyers of short-term pullbacks.