USD/CAD Forecast November 1, 2017, Technical Analysis

USD/CAD daily chart, November 01, 2017

The US dollar went sideways during the session on Tuesday, before shooting towards the 1.29 level. The market is in an uptrend, so I like buying dips as they appear. If we can break above the 1.29 handle, the market should then go looking towards the vital 1.30 level above. I believe that the market continues to show favoritism to the US dollar, even though the oil market has been rallying. That is impressive, and therefore I think that the Canadian dollar is in a lot of trouble. The longer-term uptrend should continue to feed the frenzy, but we have rallied enough over the last couple of weeks that it’s probably going to be best if you pick up value on pullbacks. This is a longer-term move, so there’s no need to jump in and immediately.

If oil starts to sell off, then that will be yet another reason to send this market higher as the Canadian dollar will get punished for that as well. That would of course be a bit of a “double whammy” in the market, and I think that we would see the market accelerate to the upside at that point. Currently, does not look as if the currency traders around the world are willing to purchase the Canadian dollar in lieu of the oil market, so that being the case it’s likely we continue to see buyers. The 1.25 level underneath should continue to be massively supportive, so it’s not until we break down below there that I think the sellers could get a grip on the market. Longer-term, I believe that most of the traders out there dealing with this market have become more of the “buy-and-hold” crowd, meaning that if you are patient enough you could realize profits to the upside.

Written by FX Empire