USD/CAD Forecast June 27, 2017, Technical Analysis

USD/CAD daily chart, June 27, 2017

The US dollar fell initially against the Canadian dollar, reaching towards the 1.32 level. However, on the hourly chart we ended up forming a bit of a hammer. The hammer of course is a very bullish sign, and it sends the market to the upside. With this being the case, we reached higher but later in the day we started to see selling pressure yet again. This will ultimately reflect the oil market, and it appears that oil is trying to form a little bit of a base. Longer-term, I am very bullish of this pair, because we have a serious housing bubble getting ready to burst in Toronto, and I cannot stress this enough as it is going to be a major problem.

Short-term selling, long-term buying

And the short-term selling is the best way to go, perhaps finding some type of exhaustive candle to short for an hour or 2. I believe that the market will eventually break down below the 1.32 handle, and that should send us looking for the 1.3150 level. Longer-term, I will wait to see some type of daily supportive candle that I can take advantage of born impulsive candle to the upside. I will also keep an eye on the oil markets, as if they start to fall, which I think they will give enough time, we will send this market to the upside, perhaps reaching towards the 1.34 handle, and then eventually the 1.40 level. I do not want to put any money into this market to the downside for any real length of time. These are short-term scalps that I see setting up, with a longer-term opportunity to make serious money on the upside. This of course will be a volatile market, but I know that historically when this market takes off, it moves rather quickly.

Written by FX Empire