USD/CAD Forecast: Continues to Drift Lower Against Canadian Dollar

Currently, the market seems to be volatile, as the US dollar is generally weak, as the minutes of the FOMC meeting indicated that many members may be in favor of a gradual increase in interest rates. USD/CAD drifted slightly lower in what would be very quiet trading on Thursday. After all, most of the volume in this pair will come from North America, unless of course something happens in the oil market. Remember that the Canadian dollar is considered a proxy for crude oil, but that is not the only thing that moves the pair. Advertisement IS MONEY READY TO WORK FOR YOU? TRADE NOW For what it’s worth, we recently tried to break above the 50-day EMA, but we’ve started to drop a bit and it looks like it’s trying to hold resistance. It’s also worth noting that the market had both support and resistance at the 1.35 level, and you can even make a bit of a „head and shoulders” pattern above it. Below the 1.32 level was an area that used to be resistance, so now it should be considered support. In fact, we jumped out of that general vicinity about a week and a half ago. Interruption Before At this point, the market seems to remain volatile as we have general weakness in the US Dollar after the minutes of the FOMC meeting indicated that many members may be in favor of a gradual rate hike. This will cause people to sell dollars, but at the same time oil will break and this will act against the Canadian dollar. Here, one could say that we are trying to form some kind of new consolidation zone, but I think that remains to be seen. Keep in mind that Friday’s session will also be very thin in North America, so I wouldn’t expect fireworks from this pair. The real debate will take place on Monday next week when traders return to work, and then of course we have jobs coming out sometime later in the week in the US. The final nail in the coffin for the year is the Fed meeting in December, which is just a few weeks away. In the meantime, I expect a lot of breaks in that 300 point range, and then we’ll see some sort of resolution later.

Dodaj komentarz

Twój adres e-mail nie zostanie opublikowany.