USD/CAD Forecast December 29, 2016, Technical Analysis

The USD/CAD pair initially went higher on Wednesday, but turned around to form a shooting star. This is not a surprise, as we have the Crude Oil Inventories announcement coming out today, so that will obviously influence the oil market, which by extension will influence the Canadian dollar itself. A pullback at this point should be a nice buying opportunity though, just as a break above the top of the shooting star would be a scenario where we would see the market continue to go much higher. Currently, the market is a little bit overextended, so a pullback is probably the healthier option.