The US dollar initially went sideways against the Canadian dollar, testing the 1.25 level for resistance. We found plenty of resistance there, and as the jobs numbers disappointed in the United States, this market fell. The GDP numbers and Canada have been strong as of late, so it looks likely that we will continue to see bearish pressure. The market is likely to go down to the 1.22 level, and perhaps even the 1.20 level longer term. Rallies continue to be selling opportunities, and if the oil markets can pick up bullish pressure, that should be reason enough for the market to go lower as well. A break above the 1.25 level would be bullish, but I don’t think that’s going to happen after Friday’s action.
Written by FX Empire