USD/CAD Forecast May 19, 2016, Technical Analysis

The USD/CAD pair initially tried to rally during the course of the day on Wednesday, but found the 1.30 level to be far too resistive again as we ended up forming a shooting star. This is preceded by a hammer, and of course we have seen quite a bit of support at the 1.28 handle, so we are not necessarily looking to sell for anything longer than a short-term trade. We also believe that a bounce off the 1.28 level offers a short-term buying opportunity. If we did finally break above the 1.30 level, it would be a significant breakout.