USD/CAD Price Forecast January 30, 2018, Technical Analysis

The US dollar has rallied slightly during the day on Monday, but not enough to be substantial. We are testing a range that we have been in for several sessions, with the 1.24 level above being resistance, and the 1.23 level underneath being support. The market continues to go back and forth, and I think that the oil markets will of course have their influence as usual. Oil has hit a bit of bullish pressure lately, so we have continued to see rallies faded in this pair. I think that continues to be the case, unless of course we break above the 1.25 handle above which has a massive amount of psychological importance attached to it.

If we break down below the 1.23 handle, then I think we will probably go down to the 1.21 level, which is the beginning of a major support level that extends down to the 1.20 level. That is the “bottom” of the uptrend, which is in serious jeopardy anyway. If we break down below that level, I think this pair will unwinding go much, much lower. Anticipate a lot of noise along the way and be very careful as this market will be reacting to what happens in the oil markets, which although bullish, have been very difficult as of late and of course can turn around rather rapidly with a few choice words coming out of the Middle East, or Russia.