USD/CAD Price Forecast February 2, 2018, Technical Analysis

The US dollar has gone a little bit higher during the trading session on Thursday but expecting a move during the day before the Nonfarm Payroll numbers is a bit much to ask. I believe that if we break above the 1.24 level, the market should then go to the 1.25 level after that. If we see some type of exhaustion, then I think the market roles over and reaches down towards the 1.22 handle. This is a market that is very sensitive to the jobs number, and of course the oil markets themselves. The oil markets of course can put a lot of interest on the Canadian dollar.

If we break above the 1.24 level, it would need to coincide with the selling off crude oil in my estimation. I believe that the 1.25 level above is a target in general. If we can break above there, then the market is free to go much higher. I’m assuming that any rally at this point in time will probably find sellers, as we have seen such ferocity in the selloff until the last couple of days. In the way, I suspect it’s probably best to sit on the sidelines and see where we close at the end of the day today, as the jobs number tends to cause a lot of unnecessary noise, and therefore a lot of unnecessary problems. Ultimately, volatility is the one thing you can count on.