Yahoo Finance US dollar choppy against the Canadian dollar during quiet Tuesday session
The US dollar went sideways during the trading session on Tuesday, bouncing around the 1.2550 level. This is an area that is rather important, as it has offered support over the last several sessions. I think that any rally at this point is probably going to find resistance, especially if we can continue to see some type of support in the crude oil markets, something that I fully anticipate happening. In fact, it’s not until we break above the 1.2750 level that I think that the pair is going to continue to go higher. Ultimately, if we break down from here I anticipate that the 1.25 level will be targeted, which is going to be much more supportive.
The 1.25 level will be difficult to break down below, and I think we are looking at a situation where short-term sellers will come back into the market, perhaps offering opportunities, but in the end, I think that looking for some type of exhaustion after a rally is probably best. If we were to break down below the 1.25 level, the market could go much lower, perhaps down towards the 1.2350 level. Ultimately, this is a market that will continue to be noisy, but I believe that until oil markets roll over, it’s likely that the pair will continue to have more downward pressure than anything else.
It’s possible that some type of “risk off” move coming out of the overall attitude of markets could send this market higher, but I anticipate that the most likely move is lower.
USD/CAD Video 18.04.18
This article was originally posted on FX Empire
