USD/CAD Forecast February 6, 2014, Technical Analysis

The USD/CAD pair went back and forth during the session on Wednesday, continuing to tread water just below the 1.11 level. With that, it appears the market is going to simply go sideways between now and nonfarm payroll numbers coming out on this Friday. On top of that, there are the employment numbers coming out of Canada, so it makes sense that the market between the two currencies would be very flat. However, the 1.10 level looks to be very supportive, so we feel that ultimately this pair probably goes higher. In the meantime, we will simply be on the sidelines.