USD/CAD Price Forecast February 8, 2018, Technical Analysis

USD/CAD daily chart, February 08, 2018

The US dollar has rallied against the Canadian dollar during the trading session on Tuesday, as the market continues to price and the fact that the shale producers in the United States are starting to crank out production. It was only a matter of time as pricing for crude oil had gotten higher, before American started producing more. Because of this, I believe that there will continue to be a bit of bearish pressure on the crude oil market, which hurts the Canadian dollar. Longer-term, I anticipate that this market is going to go to the next major resistance barrier, which is essentially the 1.29 region, extending to the 1.30 level.

I like buying pullbacks, but only if we can stay above the 1.2480 level. If we break down below there, the market probably goes looking to much lower levels, and I think it’s only a matter of time before we would reach down towards the 1.23 level. However, that’s the least likely of scenarios that I have mapped out, so I believe that I will be going long of this market, and that the uptrend that had been so strong last year will probably resume as oil markets may have gotten a bit ahead of themselves.

One thing I think you can count on is volatility, because quite frankly the oil markets are volatile themselves. There are concerns about the underlying strength of the Canadian housing market, and several other issues that Ottawa must deal with. This may only fuel the move.

Written by FX Empire