USD/CAD Price Forecast February 1, 2018, Technical Analysis

The US dollar has broken down during the trading session on Wednesday, breaking below the 1.23 level handily. In fact, at one point we even broken below the 1.2250 level. However, we are starting to see a bit of a push back by the greenback, and it looks like we are trying to rally a bit. However, there so much in the way of noise above I think it’s only a matter of time before the sellers return, and at this point it’s probably best to look for some type of exhaustive candle to take advantage of and start shorting. The market participants have certainly been aggressive to the downside, so it’s likely that we will continue to see more of the same.

Oil markets have also been very bullish, so it’s likely that we will continue to see the crude oil markets influence the Canadian dollar longer term. The markets may be a bit quiet over the next couple of sessions though, as the jobs report comes out on Friday. The next couple of days will probably be the market trying to set up for the Nonfarm Payroll Numbers and allow traders to look towards the future. I think that there is extensive resistance to the 1.24 level, so unless we can clear that area, I don’t have any interest in trying to buy this market. I believe eventually oil will go higher, especially if the jobs number is strong, as it would suggest more demand coming.