USD/CAD Prince Forecast November 16, 2017, Technical Analysis

USD/CAD daily chart, November 16, 2017

The US dollar initially pulled back during the trading session on Wednesday, reaching towards the 1.27 level, but bouncing from there to show signs of resiliency. We have since broken to the 1.28 level above, which will be short-term resistance. If we can break above there, the market should continue to go much higher, perhaps reaching towards the 1.30 level after that. In general, I think that the market continues to be very choppy, and with oil rolling over during the day, it makes sense that the Canadian dollar sold off. It now looks as if we are going to try to continue the longer-term uptrend, perhaps trying to reach the 1.30 level but this pair is almost always very choppy, and it makes sense that we will continue to see this type of action.

If we broke down below the 1.27 handle, then I would consider selling again, but at this point I think that the buyers are starting to take over. Clearly, a break above the 1.28 level is very bullish and is reason to think that the momentum will start picking up. This will be especially true if the WTI Crude Oil market drops down below the $55 level, which has been offering a lot of support. Overall, this is a market that not only follows the oil markets, but also the interest rate differential and of course the interest rate markets from both countries, which has been the focus of a lot of trading lately.

The 1.30 level above being broken to the upside should signify to the longer-term traders that they can continue to put money into the market. I think that’s what happens eventually, but in the meantime shorter-term trading opportunities present themselves, most certainly to the upside.

Written by FX Empire