USD/CAD Forecast August 2, 2017, Technical Analysis

USD/CAD daily chart, August 02, 2017

The USD/CAD pair has been very volatile during the Tuesday session, as we rallied towards the 1.25 handle. That’s an area that of course attract a lot of attention, because of the large, round, psychological aspect of this market. If we can break above the 1.2575 handle, I think that the market will continue to go higher. Pay attention to oil, because if it sells off that should put bullish pressure into this market. I believe that there is a massive amount of support below at the 1.24 handle as it is the uptrend line on the longer-term weekly chart. If we can break above the pink box that I have on the chart, I think we could begin to see the beginning of a massive rally, and perhaps a continuation of the longer-term uptrend. I don’t know that’s going to happen right away, but it is certainly something to keep an eye on.

Choppy volatile markets

I believe that the markets will continue to be very choppy and volatile, and in the short term I have to assume that we stay within the consolidation range I have marked on the chart. This offers a lot of back and forth trading, but a breakout of this box tells us where we are going for the next couple of the handles.

Written by FX Empire