USD/CAD Forecast October 20, 2017, Technical Analysis

The USD/CAD pair has been very noisy during the day on Thursday, as we continue to slam around below the 1.25 level. I think if we can break above the 1.25 level, the market should continue to go much higher, offering a nice buying opportunity. Alternately, I believe that the 1.24 level underneath is massive support, so break down below there is a very negative. Currently, I think that the market is being pushed and pulled in alternating directions due to the noise in the oil markets, so that of course causes a lot of issues. I believe the trading this market is going to be very difficult, unless of course you have the ability to scalp back and forth, and sit in front of the computer to watch the entirety of the market. I think that waiting for a significant move could be the best way to get involved, and simply following the impulsive move is probably the best way to go.
If we break above the 1.25 level, the market should then go to the 1.26 level above, which has been resistance as well. A break above there sends this market looking for the 1.30 level above. Alternately, if we break down below the 1.24 level, then I think the market drops towards the 1.21 level underneath. Either way, I’m standing on the sidelines and waiting for some clarity in this market, something that we clearly aren’t seen at the moment. Overall, I am fairly ambivalent about this market, and think that it’s probably a great way to lose money by getting involved. By being patient, you should get a clear signal as to which direction to go, paying attention to those levels that I mentioned previously. It’s going to be noisy, but eventually we will make the move.