USD/CAD Price Forecast November 27, 2017, Technical Analysis

The US dollar was a very volatile against the Canadian dollar during the Friday session, but that’s not a huge surprise considering most Americans were away from their trading desk, and that of course is most of the volume in this pair. As we continue to dance around the 1.27 level, I think that we are trying to find enough momentum to go in one direction or the other, and I think that a move above the 1.2750 level should signify that we are going to go looking towards the 1.2830 level next. Alternately, if we break down below the 1.2675 level, the market should move back down to the 1.25 handle. Remember, crude oil has a significant influence on the Canadian dollar, so if the market starts to rally we could see more bearish pressure in this market. I believe that the pair will remain very choppy, and as Friday would’ve been missing a lot of volume, I don’t read too much into the move.
On some type a breakout, I’d be willing to start going long and adding on short-term dips. I would be cautious and start out with smaller positions as I think the noise will be very difficult to deal with. In general, I believe that the volatility will be difficult to deal with, but if you have the ability to trade binary options, you could trade the market that way. Ultimately, I think that a breakdown would probably have a lot of momentum to it, and reaching towards the 1.25 level rather rapidly. Pay attention to oil and of course the Canadian housing market, as both will have a massive influence. In general, I would point out that we have made a higher high on the weekly chart, so it’s likely that we should continue to find plenty of support.