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

The US dollar initially fell during the trading session on Tuesday, reaching down towards the 1.28 level underneath, where we have seen buyers. A breakout above the 1.2875 level has happened late in the trading session, and it looks as if we are trying to reach towards the 1.29 handle, and then eventually the 1.30 level which of course is a large, round, psychologically significant number. I think the dips continue to be buying opportunities as the Canadian economy is somewhat soft, and of course we have the massive housing bubble in the Greater Toronto Area that is a major issue for the Canadian government.
I think selling this pair is almost impossible, least not until we break down below the 1.28 handle, but I also recognize that the 1.27 level underneath is even more supportive. I believe that the Federal Reserve meeting today will have a massive influence on this market as the Bank of Canada has already suggested that it is going to be on hold, and if the Federal Reserve sounds hawkish, that could be very bullish for this pair, as it gives a perfect dichotomy between the central banks that traders can trade upon. Alternately, if the Federal Reserve is dovish in their statement, then it’s likely we will see this market pull back. Longer-term, I think oil will have its influence as per usual, but in general I think there is a significant amount of buying pressure that needs to be expressed.