USD/CAD Price Forecast March 26, 2018, Technical Analysis

The US dollar broke down during the session on Friday against the Canadian dollar, as crude oil continues to show signs of life. I think that the market will continue to be very noisy, but if we can break down below the 1.28 level, that might unleash selling down to the 1.27 level, and then eventually the 1.25 level. This obviously would coincide nicely with a break above the $70 level in the WTI Crude Oil market, which is always influential in this pair. There are also concerns about the trade war looming between China and the United States, and that of course will have a drag on the US dollar in general.

The market breaking above the 1.31 level would unleash the buyers again and should send this market towards the 1.35 handle. That would coincide with the oil markets roll over and break down, perhaps sending it down to the $65 level. At that point, this market would probably shoot straight out. I think there are lot of noises coming out of mouse of politicians that can cause issues, and of course we must worry about the overall demand of the United States for crude oil. While the driving season in summer may look as if it’s going to be decent, if we get some type of trade were going and subsequent slow down economically, that could change everything as well. There are a lot of moving pieces in this pair. From a technical analysis standpoint, we should be seeing significant support underneath.