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

The US dollar has been bullish against the Canadian dollar, looking very likely to try to break out to the upside, and continue the overall uptrend. That being said, there is a lot of noise just above that could provide a bit of resistance, so I think we may get some noise in this and the next couple of sessions. I believe the pullbacks will be buying opportunities, unless of course the oil markets rally suddenly, and by rally I mean make fresh, new highs. I don’t think that’s going to happen, so longer-term I remain very bullish of this pair, but also recognize that we may have the pullback happen occasionally that gives us value, and you should be looking for those opportunities.

I believe that there is a massive “floor” in the market closer to the 1.27 level underneath, so if we can stay above that level, I think there’s no way to short this market. I also believe that the 1.25 level under there is massive support as well. So, if we break down below the 1.27 level, I think the market will drop to the 1.25 level where it will be even more supported. I don’t have any interest in shorting, I think that given enough time we will find value on these dips the people are willing to take advantage of. Remember, US interest rates are going to continue to go higher, and that of course will drive the US dollar higher against its neighbor. Oil falling of course puts negative pressure on the Canadian dollar as well.

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