USD/CAD Price Forecast December 20, 2017, Technical Analysis

The US dollar has been somewhat sideways during most of the session, but as stock traders came to work in New York, we started to see the greenback pick up momentum against the Canadian dollar. The 1.29 level is resistance, and if we can break out above there, I think we will go looking towards the 1.30 level after that. Once we clear the 1.30 level, it becomes a longer-term signal, and we probably will look towards the 1.35 handle above. Keep in mind that the oil markets obviously have their influence on this pair, and if oil roles over again, that will give us bullish pressure in this market.

With the Canadian housing bubble, the Bank of Canada hesitant to tighten monetary policy anytime soon, and tax reform, I think there are quite a few reasons to think that this market will go higher. I think short-term pullbacks will continue to offer value the traders are willing to take advantage of, as I see on the hourly chart currently. The 1.2850 level underneath is the first significant support level, and I don’t think we break down below there anytime soon. Even if we do, I think there’s plenty support down to the 1.2750 level. It’s not until we break down below there that I would be concerned about an uptrend. I think it will be noisy, but that’s typical for this pair, especially considering that we are within a week of Christmas holiday. We will continue to see a lot of noise, but quite frankly I think it’s a situation where the buyers are going to be more resilient.

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