USD/CAD Forecast March 5, 2014, Technical Analysis

The USD/CAD pair did very little during the session on Tuesday, but did manage to test the 1.11 handle. We break out above it, but it does look like the markets ready to continue grinding sideways. We think that this market ultimately goes higher, but we need to clear the 1.12 level before we really see any strength in a movement higher. There is plenty of support below, especially near the 1.09 handle, so we look at any pullback as a potential buying opportunity. However, you will have to be patient as this pair does tend to consolidate for long periods of time.