USD/CAD Price Forecast March 29, 2018, Technical Analysis

The US dollar has gone back and forth during the trading session on Wednesday, showing signs of both strength and weakness, which makes sense considering that the US dollar has been a bit soft, but at the same time the crude oil markets have been falling. I believe that the market will be attracted to the 1.30 level above but given enough time we will always have noise. I believe that the short-term pullbacks offer value, and the oil market is most certainly overbought. I think that the 1.30 level is an area that has been attractive for ages, so it would not surprise me at all to see this market go looking towards that figure. The markets of course will react to what goes on in the oil market, but I believe that the general attitude of the oil is shaky at best.

I don’t think this is going to be an easy move, but a bounce seems to be ready to happen, and we look at the hourly chart, you can see a bit of a basing pattern, or perhaps even a bit of a super complex head and shoulders situation. If we break down below the 1.28 level, the market then could unwind to the 1.27 level next. This is a market that is notoriously choppy, so keep that in mind if you are going to play the pair.