USD/CAD Price Forecast November 13, 2017, Technical Analysis

The US dollar was slightly positive against the Canadian dollar during the Friday session, as we are testing the 1.27 level for resistance. On the short-term charts, it certainly looks as if we will continue to find sellers there, but if we can break above the 1.2725 level, I would expect this market to continue to go to the upside. On the longer-term charts, we have made a “higher high”, although on the hourly chart it certainly looks negative. Because of this, I think we are trying to find our footing for a larger move, but right now we are concerned with the 1.27 handle. I believe this level is going to give us an opportunity to trade in one direction or the other, and give us the directionality of the next short-term move. Simply put, if we can break out to the upside, then I’m a buyer. However, if we were to break down below the 1.2650 level, essentially clearing this region, I believe we probably go down to the 1.26 handle, followed by the 1.25 level which is much more significant on the longer-term charts.
Keep in mind that the oil markets have their influence on the Canadian dollar as well, so keep this in mind. If oil starts to roll over, that could put bullish pressure into this market place. I believe that the gains in oil will be somewhat limited, mainly because of the lack of control that OPEC has over so many of the oil producing countries around the world now. Those markets also look a little bit parabolic, so we may see some type of ceiling come into play relatively soon. In general, I think that paying attention to the 1.27 level is the way to go in this market over the next several sessions.