USD/CAD forecast for the week of July 28, 2014, Technical Analysis

The USD/CAD pair initially fell during the course of the week, but as you can see we broke above the 1.08 handle finally. Will we find interesting about this market right now is the fact that we have not only gone higher, but we have in fact broken above a round number that has served as support previously, and perhaps even more telling broken the top of the shooting star from the previous week. Both of those are very positive sign, so therefore we feel that the market is ready to continue to move higher after we have recently bounced off of the uptrend line you see on the chart attached.

The next target should be the 1.10 handle, so we are very bullish and recognize a pullback should continue to be buying opportunities. It may take a while to get to that area, but quite frankly we feel that it is probably the most likely move. In fact, we feel that this market will not only go to the 1.10 level, but the 1.13 level given enough time.