USD/CAD Price Forecast January 12, 2018, Technical Analysis

The US dollar has gone sideways in general during the trading session on Thursday, and I believe that the 1.25 level underneath is massive support. Since we have broken above that area, I think that a fresh, new highs should send this market much higher, perhaps reaching towards the vital resistance level at the 1.29 level that extends to the 1.30 level after that. The volatility in this market could continue, because quite frankly the Canadian dollar is highly sensitive to the crude oil markets. But the one thing that I would point out is that we have completely taken back the gains that the Canadian dollar picked up after the jobs reports on Friday. That massive candle has been completely wiped out, and that of course is a very strong sign for this pair.

I believe that the Canadian dollar will be highly leveraged to crude oil going forward, just as it always has been. I think that if oil roles over, we will probably go looking towards the 1.29 level, but I think breaking above the 1.30 level will be very difficult to occur. If it does happen, it becomes more of a “buy-and-hold” situation. Volatility aside, I think there’s a lot of concerns in Canada about the housing market, which is the great open secret that nobody’s talking about. Toronto is an absolute mess when it comes to housing bubbles, and I think that will rear its ugly head soon.

Economic Calendar