USD/CAD Price Forecast March 7, 2018, Technical Analysis

The US dollar has fallen during trading against the Canadian dollar on Tuesday, reaching down towards the 1.29 level where we are starting to see a bit of support. It makes sense that the 1.30 level has offered enough resistance to turn the market around, because quite frankly we went to that level rather quickly. The market pulling back from there should offer a nice buying opportunity though, and on the hourly chart it almost looks as if we are ready to go to the upside. The 1.30 level will take several attempts to break above, as it is a very significant level on the longer-term charts as well, so that would be an issue that might take a significant amount of momentum to overcome.

I believe that if we break down below the 1.2850 level, the market will probably drop down to the 1.2750 level next, but quite frankly I have no interest in shorting this market anytime soon. I think that we will eventually make the breakout, and the breakout probably goes to the 1.33 handle, followed by the 1.35 level, something that I expect to see in the next few months.

The volatility in this market should continue to be an issue at times, but keep in mind that these economies are highly intertwined, so choppiness is something that you should learn to accept and thrive in when it comes to this pair. You should think of it as going from one consolidation area to another.

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