The USD/CAD pair fell during the course of the session on Wednesday, but then turn right back around and broke well above the 1.43 level. Because of this, the market should continue to go higher as the oil markets fall. Oil markets falling will continue to put serious pressure on the Canadian dollar, and as a result we feel that this market is not only bullish, but one that we can hang onto for some time. After all, the 1.45 level is our next target going forward.
Ultimately, if we pullback from here we cannot sell this market, because quite frankly we have quite a bit of support below at the 1.40 level, and with that we are more than willing to buy markets on short-term pullbacks. After all, the uptrend has been very strong for quite some time, and with that it’s hard to fight this particular move.
Oil markets look like they are ready to break down below the $30 level, and that will drive the value the Canadian dollar much lower. Ultimately, the US dollar is considered to be the favored currency by us at FX Empire in general, as the US dollar represents safety to a lot of traders out there. There are lot of concerns out there when it comes to the world economy right now, and of course money will continue to flood into the United States, especially the Treasury markets.
Is not until we break down below the 1.38 level that we would even remotely consider selling this market, and as a result we believe that the longer-term traders will continue to hang onto the street, and at this point in time we see no way whatsoever to go against the trend at this moment in time.
In fact, I believe that this market will probably continue well beyond the 1.45 handle, perhaps heading to the 1.50 level beyond that. It is very likely that this trend continues through the rest of the year, and at this point in time, we at FX Empire are very, very bullish.