Yahoo Finance US dollar sideways against Canadian dollar
The US dollar has gone sideways in general, as the Canadian dollar has held its own. But quite frankly we have seen such a large move over the last couple of sessions that it’s likely we will need to catch her breath before going higher. I think that short-term pullbacks will probably offer value the traders are willing to take advantage of, with the 1.2750 level offering the first obvious support barrier as it was so resistive.
I believe that the market will eventually find its way towards the 1.30 level, but there is a lot of noise between here and there. Because of this, I think it will be choppy, yet slightly positive trading. Remember, these economies are highly intertwined, which creates a lot of back and forth action in a marketplace that sees a lot of commercial trading as both countries are constantly sending products across the border. I do think that the miss in Canada with inflationary numbers will continue to weigh upon the Loonie, but I think that the upside pressure is somewhat limited in the short term. If we were to break above the 1.30 level, then we could go much higher, in fact, I believe that the market would become more of a “buy-and-hold” situation when it comes to that move. I think that we will eventually rally, especially if the housing bubble in Canada starts to unwind a bit.
USD/CAD Video 25.04.18
This article was originally posted on FX Empire
