USD/CAD Price Forecast January 4, 2018, Technical Analysis

I believe that this pair is going to continue to be rather choppy over the next couple of sessions, with the 1.25 level offering a bit of a floor. This is because we get jobs numbers out of both the United States and Canada on Friday, and at the same time. Because of this, I believe that this pair might be “Ground Zero” for short-term news trading on Friday. Between now and then, it’s going to take a lot of news or perhaps a huge move in the oil market to move this pair. I suspect that this market is going to continue to find plenty of support at the 1.25 handle, and then again won’t be able to break out to the upside, at least not for a significant move. The next couple of days are going to be very choppy and sideways, so therefore very unlikely to be able to be traded for anything more than a scalp.

If we did breakdown below the 1.25 handle underneath, the market should continue to go to lower levels, perhaps the 1.2350 underneath. Ultimately, this is a market that I think will be something that only short-term traders will be involved in over the next couple of sessions, but I do think that by the time we finish the session on Friday, we should have a better idea of where this pair is going to go. If we do break down, the market goes down to the 1.20 level longer term. Otherwise, if we rally above the 1.26 handle, I think the market may go looking towards the 1.29 handle.

Economic Calendar