USD/CAD Forecast May 18, 2016, Technical Analysis

The USD/CAD pair went back and forth during the course of the day on Tuesday, showing that we continue to struggle just below the 1.30 level. If we can break above there, that would be a very bullish sign but until then we are probably just going to grind sideways overall. If we break down below the 1.28 handle, the market should then continue to go much lower at that point in time, perhaps reaching towards the 1.25 level ultimately. Either way, were going to get a lot of volatility and with the Crude Oil Inventories announcement coming out today, today could be very interesting.