The US dollar fell against the Canadian dollar on Friday, slicing through the 1.27 level again. The market is taking a bit of a break after several attempts to the upside, and I think that a pullback is healthy. When looking at the longer-term charts, we have bounced from a major uptrend line, and I am still bullish of this market. I look at this pullback is an opportunity to offer value for traders who are patient enough to take advantage of any type of pullback and support. I think that given enough time, we will find buyers and continue to go much higher, with my initial target being the 1.30 level.
I continue to buy pullbacks time and time again, as I believe that the uptrend line should hold. I will add to my position every time we make a fresh, new high, but I will do so in very small increments. I have no interest in shorting, least not until we break down below the uptrend line off the weekly chart, which of course would change everything. This is a market that is very noisy, but I think will continue to favor the US dollar as the American economy shows real signs of strength currently.
Written by FX Empire