USD/CAD Price Forecast March 1, 2018, Technical Analysis

USD/CAD daily chart, March 01, 2018

The US dollar has rallied significantly during the trading session on Wednesday, as we continue the uptrend. Oil markets look very soft, so it’s likely that we will continue to see this market rally to the upside as well. I think that pullbacks should have plenty of support underneath, especially near the 1.2750 level. There is a lot of support under there as well, so I look at dips as buying opportunities, and it’s only a matter of time before value hunters come back. I believe that the Canadian dollar will suffer from lower oil pricing this year, and of course the Canadian housing bubble that I’ve been paying a lot of attention to in the Greater Toronto Area.

I think that the market continues to be very noisy, but that’s the norm for this pair as the economy is or so highly intertwined, and as the nations are the largest trading partners of each other, there is a lot of back and forth. I think that adding slowly on dips when the market works out for you is the best way to go, as there is very little in the way of reason to think that this market will break down with any significance.

Pay attention to the US bond markets, because if the interest rate situation continues to go higher, then it makes sense that we continue to go higher as well. While the US dollar has struggled against many other currencies, the Canadian dollar is a bit of a misnomer, as it is so highly leveraged to petroleum.

Written by FX Empire