USD/CAD Forecast October 24, 2016, Technical Analysis

The USD/CAD pair broke higher during the course of the day on Friday, as we continue to see bullish pressure in the US dollar overall. It makes sense that we continue to grinder way to the upside against the Canadian dollar because the oil market is starting to show signs of exhaustion. That makes sense that the Canadian dollar would lose value at that point, and because of this am watching not only the USD/CAD pair, but also the crude oil markets overall.
It should be noted that the crude oil markets formed shooting stars for the last couple of weeks, so this point in time it looks as if we very well could roll over. That could be the catalyst to go long in this currency pair, and perhaps send the market looking for the 1.35 level above. The candle for the session on Friday was rather strong, and was preceded by a very strong candle on Thursday so I believe that the market continues to show buyers getting excited. The 4 there, we even have the hammer form as we bounced off of the psychologically significant 1.30 level.
In other words, we have a massive amount of support anyway and the fact that we ended up forming a fresh, new high suggests that the bullish pressure is only starting to build at this point. With this in mind, I have no interest whatsoever in selling this market, as I believe there are more than a view reasons to think that the pressure will continue to build. I believe that the US dollar is getting a bit of a bid due to the safety of the greenback, and with that I believe that it will only be another reason for the bullish pressure. I think as soon as we pulled back you have to start be looking for some type of supportive action in order to go long. I think that the 1.32 level could be the first massive support level and possibly even a “floor” in this market going forward.