USD/CAD Price Forecast March 27, 2018, Technical Analysis

The US dollar initially pulled back a bit during the trading session on Monday but turned around to show signs of support again. We had formed a couple of hammers previously, so that is a bullish sign as well. I think that eventually we go looking towards higher levels, and we will break above the 1.30 level. This will also be highly influenced by the crude oil markets. They look as if they are getting a bit over extended, and that of course could roll over rather quickly as well markets have been so volatile. If oil falls, then should push the Canadian dollar lowering value.

I believe that the 1.28 level underneath is going to be supportive, and it’s not until we break down below there that I would become somewhat concerned. We have seen a significant search higher, and this short-term pullback is quite normal in the big scheme of things as we can’t go up forever. I think that eventually we will go looking towards the 1.33 level, but it’s going to take a while to get there as these economies are so highly intertwined, and that will cause a lot of noise. I think that as the 2 economies are the largest trading partners of each other, it makes for choppy conditions under the best of situations. I believe that eventually we will continue to go higher, but it’s not that easy.