USD/CAD Price Forecast November 23, 2017, Technical Analysis

The US dollar rolled over against the Canadian dollar again on Wednesday, reaching towards the 1.27 level. The 1.27 level has been supportive in the past, and I think that it’s only a matter of time before the buyers return and push this market towards the upside. I believe that the volatility will continue, and of course oil will have it say when it comes to this market. Beyond that, it’s also likely that we will see noise over the next 48 hours, as North America goes dark. With the Thanksgiving holiday coming out today, it’s likely that the liquidity will dry up in the later hours of the session, and that will probably continue to be the case on Friday as well. With that, I would be very unlikely to put money to work in this pair, but I believe that a break below the 1.2650 level would be very negative, perhaps sending the market down to even lower levels, namely the 1.25 handle. A bounce from the 1.27 level is likely in my estimation though, and I would be more than willing to start buying at that point. I still believe that the Canadian dollar has a lot of inherent problems, not the least of which is the housing bubble.
In general, I think that volatility continues, and this pair does tend to be very choppy because of the proximity of the 2 countries and the highly leveraged relationship between them. Ultimately, I think that the pair will attract a lot of value hunting, and I think that we will eventually go looking towards the 1.30 level above, and then break above there to reach towards the 1.32 level after that. Overall, this is a very noisy market, but I think that the uptrend remains intact.