USD/CAD Forecast May 12, 2014, Technical Analysis

The USD/CAD pair rose during the session on Friday, breaking back above the 1.09 handle, which was a major support level. Because of this, the weekly candle is actually a hammer, so a break above the highs from the session on Friday would be enough for us to start buying again. We have no interest in selling, at least until we break to a fresh, new low. If we do go higher though, we recognize of the 1.10 level might very well be resistive enough to cause a bit of a problem so we expect choppy days ahead.