USD/CAD Forecast May 28, 2014, Technical Analysis

The USD/CAD pair went back and forth during the session on Tuesday, as we continue to hug the 1.0850 region. This area has been somewhat magnetic for price, and it appears that we are starting to see a bit of support here. However, we need to see an impulsive move to the upside in order to start buying, as this area is in a major support level. In fact, the major support level is closer to the 1.06 handle. However, we do believe ultimately this market could go higher but we need to see a break above the recent consolidation to even consider it.