USD/CAD Forecast March 19, 2014, Technical Analysis

The USD/CAD pair initially fell on Tuesday, but shot higher as the Bank of Canada’s Poloz said that the interest-rate cuts weren’t necessarily out of the question. This of course got the weak hands out of the market, as the Canadian dollar was heads and later day trading. However, we are still well within the consolidation area, so we don’t necessarily look at this as a development worth worried about, just another reason to think that eventually we will break out above the 1.112 level. Once we do that, we think this market heads to the 1.15 level.