USD/CAD Price Forecast December 4, 2017, Technical Analysis

USD/CAD daily chart, December 04, 2017

The US dollar fell rather significantly against the Canadian dollar during Friday’s trading session, breaking down towards the 1.27 handle. A breakdown below that level probably sends this market looking for the 1.25 level, and part of this would be due to the political news coming out of Washington that General Flynn is prepared to testify against the White House to Congress involving the Russian scandal. This is probably more of a knee-jerk reaction than anything else, because quite frankly we don’t know what he has to say, and although it does suggest that there something to be worried about, this could be one of the situations where it ends up being a massive disappointment, and we turn right back around to rally significantly.

With this being the case, the main driver this pair is typically oil, and I think eventually it will come back to that. Obviously, oil will be rallying at this point if the US dollars falling, but given enough time I think once things calm down, it’s very possible that we could get a significant bounce. Going into the weekend, it’s not only foolish, but quite frankly it’s dangerous to put on some type of position as the news flows over the weekend will have a massive effect on how the US dollar trades at the open. Ultimately, I suspect that we will gap in one direction or the other at the open, and that might be the direction that you need to trade at first. This pair does tend to move rather rapidly, so be advised that the sudden moves can be quite violent.

Written by FX Empire