USD/CAD Forecast October 30, 2017, Technical Analysis

USD/CAD daily chart, October 30, 2017

The US dollar rallied during the day on Friday initially, but found the 1.29 level to be a bit too resistive. We pulled back from there, but quite frankly this is a very bullish pair currently, and I don’t have any interest in shorting, least not yet. Having said that, the 1.30 level above is massively resistive and of course important as it is the 50% Fibonacci retracement of the selloff that we had recently seen in this pair. Also, we have the oil markets try to make a statement, and the WTI Crude Oil market is currently testing the $53 level. If we break above there, it’s possible that we get a complete turnaround as the Canadian dollar would enjoy that lift. However, we have seen that the US dollar continues to strengthen due to better than anticipated GDP figures, and that of course the fact that the Federal Reserve is looking to raise interest rates. In fact, interest rates in the United States have been rising for some time, and that helps the greenback.

I think that the 1.28 level underneath will be supportive, and that of course the 1.27 level underneath there. I think that it’s more than likely going to be the case, that we pull back but find buyers. However, I think that there is going to be a lot of choppiness, and of course you should pay attention to the weekly chart simultaneously. If we do rally to the 1.30 level, we could get a signal on the weekly charts that you cannot ignore. It’s possible that we may get a failure there, and therefore must start shorting. On the other hand, we could break above the 1.30 level and see a renewed vigor to the uptrend, and perhaps reaching towards the 1.35 handle. The next couple of sessions should be rather important.

Written by FX Empire