USD/CAD Forecast September 22, 2017, Technical Analysis

USD/CAD daily chart, September 22, 2017

The US dollar has been slightly positive against the Canadian dollar during the trading session on Thursday, testing the underneath of an uptrend line that had been broken previously as the Bank of Canada raised interest rates. The 1.24 level is where we fell from after that announcement, so if we break above that level, I think that the trend will start to head towards the upside. If we get some type pullback from here, it could be a continuation of the downward pressure that we have seen previously, and of course if oil markets continue to rally that could help as well. Currently, it appears that people are focusing more on the Federal Reserve suggesting that the US dollar may strengthen. However, I think that if we can wipe out the impulsive candle on the hourly chart from the session on Wednesday, that would be a sign that we are rolling over and ready to go much lower. This has been a very volatile market as of late, and I don’t know that it’s going to change anytime soon.

Ultimately, smaller positions will be needed

I think with the type of choppiness that we are seeing in this currency pair, smaller positions will probably be needed to protect your account. It’s not until we get some type of clarity on the longer-term charts that it’s a market that I’m willing to put serious money in, but I do recognize that we are looking at a very serious inflection point when it comes to this market. Because of that, I think that the pair will be very interesting to watch, and perhaps one to build up a larger longer-term position. However, I’m going to let the market tell me what to do first before getting overly exposed.

Written by FX Empire