USD/CAD Forecast May 8, 2014, Technical Analysis

The USD/CAD pair did very little during the session on Wednesday, as we continued to bounce around the 1.0980 level. This area has been rather supportive, as it is the bottom of the larger consolidation area. Because of this, if we get a supportive candle we would be willing to take a risk on a long position. On the other hand, if we break down below the recent low, we are more than willing to start selling this market down to the 1.07 level, or possibly even the 1.06 level. In the meantime though, we have to see some type of decisive candle in order to get involved.