USD/CAD Forecast January 3, 2017, Technical Analysis

The USD/CAD pair broke down below the 1.35 handle, showing signs of exhaustion. However, I think there is quite a bit of support just below so it’s only a matter of time before the buyers get involved. Because of this, I am sitting on the sidelines and waiting for supportive candle to take advantage of US dollar strength. Oil could roll over as well, as the inventory numbers in the United States actually rose this week, with signs that perhaps supply is going to overwhelm demand yet again. This would only exacerbate the move higher.