Video Analysis – USD/CAD January 26, 2015

Looking at the USD/CAD pair after Friday’s trading, you can see that we formed a bit of a shooting star. However, this does not constitute a selling opportunity in my opinion, rather just a bit of exhaustion after very impulsive move. Remember, just two sessions previously the Bank of Canada cut interest rates in a somewhat surprising move, as it should continue to propel this pair higher overall.

I still believe the 1.25 is the target, but I recognize that we have gone a little too far in a very short amount time. I think that pullbacks represent value in the US dollar, and as a result I am buying pullbacks as profit-making opportunities. I think that the 1.20 level is still the floor in this market, and I believe that we are in a nice healthy uptrend at the moment. However, nothing goes straight up forever, and as a result we need to fall back and pick up more buyers to make the breakout above the aforementioned 1.25 handle.