US dollar drifts slightly lower against Canadian dollar on Friday

The US dollar has drifted a bit lower during the trading session on Friday, reaching down towards the 1.2850 level during trading. I think there should be plenty of support underneath, and I think that it’s only a matter of time before we have buyers coming back into the marketplace and taking advantage of value. I believe that the 1.2750 level underneath is the “floor” in the market, and I think that the attitude of the market is to go looking towards the 1.30 level. The longer-term attitude of this market is higher from what I can see, but there should remain a lot of volatility. I think that the 1.2750 level underneath being broken to the downside would probably unwind this market rather quickly, but I think that is less likely to happen now that we have rallied like this.

I like the idea of buying dips, and I believe that we will eventually go looking towards the 1.30 level above. If we can break above there, the market should continue to go much higher. The 1.30 level above is a major barrier though, as it is a large, round, psychologically significant number. Volatility is a mainstay of this pair and short-term ranges but keep an eye on the oil market as it could give your ideas where we will head to next. Remember, if oil rises, the typically will help the Canadian dollar. Raising interest rates in the US seem to be helping the greenback.