US dollar quiet against the Canadian dollar on Monday

The US dollar is done almost nothing during the session on Monday, as we initially dipped lower but then turned around to show signs of life again. The market continues to be very jittery ahead of the jobs number on Friday, and of course we will have to pay attention to the oil markets as well. I think that this market is probably going to be very choppy and sideways in general, with a general lack of direction being a major theme. The 1.30 level above is a significant barrier, but if we can make a fresh, new high, then I think the market goes looking towards the 1.33 handle.

Otherwise, if we break down below the 1.28 handle, the market then drops to the 1.27 level, and then eventually the 1.25 level after that. Remember, if oil falls, this pair typically rallies, so keep that in mind. I also recognize that the Friday jobs number will have a major influence on what the US dollar does as well, so keep that in mind. I would keep my trading positions small, and use a range bound trading system over the next several sessions as we are waiting for some type of clarity. Currently, the Forex markets in general are very quiet so I think that could be an issue in this pair as well, as we had gotten a bit extended as of late. I suspect that the biggest mover of this market will be crude.