USD/CAD Forecast June 2, 2017, Technical Analysis

The USD/CAD pair had a volatile and choppy session on Thursday, as we continue to trade just below the 1.35 handle. The one thing that I would point out is that we recently have seen a little bit of a bullish move, and it looks as if the buyers underneath are still rather stringent. I believe that today’s jobs number will be highly influential in this market, and if we can break above the 1.3525 level, the market could continue to go to the 1.3575 level above. We also have the oil markets moving around quite a bit as well, and that of course has an influence on where this pair goes. The oil markets are often traded via the Canadian dollar by currency traders, so the fact that they fell apart during the day and this pair went sideways tells me that currently the greasy world is paying more attention to the upcoming jobs number than oil. That of course could change at the drop of a hat, but right now it seems like we are simply in a “wait and see” type of mode.
Buying dips? Possibly.
I believe that going forward it’s possible that buying dips might be the way, as we have seen a bit of a push back by be bullish traders out there after the recent breakdown. Oil markets I think are going to be insignificant trouble for some time, so I do think that longer-term are going to see money flow into this market. I believe that the best way to trade this market is probably to use small positions, as it will keep you out of serious trouble. We could find quite a bit of it in this market, especially on a Nonfarm Payroll Friday.
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