USD/CAD Price Forecast February 15, 2018, Technical Analysis

The US dollar has gone back and forth during the trading session on Wednesday, as the CPI numbers in the United States have been stronger than anticipated. Because of this, it’s likely that we will see a lot of noise in this market, because the 2 economies are so highly interlinked. Regardless, it looks as if the support should continue to be very stringent, and it looks as if we are bouncing in this area. I think that the market should continue to go to the 1.2750 level above, and then perhaps to the 1.30 level above.

Oil has is influence as usual, so pay attention to what’s going on in the market. If oil starts to roll over, then the market should continue to go higher. I think at this point, petroleum prices are driving the pair more than anything else, and obviously keeps the negative correlation that we have seen for so long. If we were to break down below the 1.25 level it would almost have to be in congruence with the oil market rallying significantly. At this point, I don’t think that’s about to happen, so I think that a “buy the dips” mentality remains in this market, and we will eventually go much higher. It’s going to be choppy, but that’s nothing new to people who trade this pair. I believe longer-term, we should continue to see noisy yet positive conditions.

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