USD/CAD Forecast August 18, 2016, Technical Analysis

The USD/CAD pair initially tried to rally on Tuesday but then turn right back around to form a bit of a shooting star. There is support just below though, so I think what we’re going to see here is a bit of a grind lower, not necessarily some type of meltdown. Oil markets have been climbing, and as a result the Canadian dollar is as well. We have broken down below a significant uptrend line, retested it, and now have confirmed that the previous support is now acting as resistance. I think we will probably try to reach towards the 1.27 level below.