USD/CAD Price Forecast March 8, 2018, Technical Analysis

The US dollar has initially pulled back during the trading on Wednesday, but you can see that we have buyers near the 1.29 level that are willing to lift this pair. On the hourly chart, we are starting to form a bit of a shooting star at the 1.30 level, which I see as a massive barrier overall. If we can break above the 1.30 level, then the market is more than likely going to reach towards the 1.33 handle next. This will coincide with oil obviously, because the Canadian dollar is considered to be a bit of a proxy for that market by currency traders.
I believe that in the short term, we will probably continue to see this market get choppy, but I think ultimately there are buyers underneath, and we will continue to see “higher lows”, showing that the overall bullish pressure seems to be coming into this market. Once we do breakout to the upside I think we will get a rush of volume. I think this will coincide with a breakdown in the oil market more than likely, but we also have the potential trade war flaring up between the United States and steel producing countries, which of course Canada is one of them. If that’s the case, I think that the US dollar will continue to strengthen against the Canadian dollar and could push this currency pair much higher over the summer. I still believe that we breakout, it’s just a question of when at this point.

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