USD/CAD Forecast February 21, 2013, Technical Analysis

The USD/CAD pair broke higher during the session on Wednesday as the Federal Reserve releases its minutes, suggesting that there is serious discussion on limiting asset purchases. If that happens, the US dollar should continue to gain ground, and this pair will be no different. Now that we are clearly above the 1.01 handle, we feel that there is an opportunity to buy off the short term charts in order to take advantage of momentum it seems to be breaking out to the upside. We think that the 1.04 will be targeted, and as a result we are willing to hang on the street for some time. The 1.01 handle should continue to be a “floor” in this market.



Written by FX Empire