Video Analysis – USD/CAD January 16, 2015

Today we’re looking at the USD/CAD pair, and you can see that we fell initially during the session on Thursday down to the 1.18 level. We found it massively supportive and bounced enough to form a massive hammer. This only as far as I can see solidifies the argument for an uptrend in this marketplace, and as I had recently suggested the 1.18 could be a bit of a floor in this market, and it appears that is to be the case.

This tells us that buying short-term pullbacks will continue to be buying opportunities that should pay off. However, if you have already been paying attention that strategy, you are already long of this market. Even if we break below the 1.18 level, I believe that there is a significant amount of support at the 1.16 level as well. Ultimately, we should break out to a fresh new high which of course is a nice buying signal. Once we get that, we should then head to the 1.22 handle, and then ultimately to the 1.25 level given enough time.