The US dollar drifted lower against the Canadian dollar, and then rallied. However, as Janet Yellen started speaking in Wyoming, the market broke below the 1.25 level again. Because of this, it looks likely that the market will continue to drop from here, making a fresh, new low soon. Once that happens, I suspect that the longer-term move will be to the 1.120 level underneath. Rallies at this point should be selling opportunities, and I think that the markets will continue to be bearish longer-term, giving you opportunities to pick up value in the Canadian dollar on those bounces.
Written by FX Empire