Yahoo Movies USD/CAD forecast for the week of September 25, 2017, Technical Analysis
The US dollar rallied a bit against the Canadian dollar during the week, testing the bottom of the uptrend line that had recently been broken. We have pulled back a bit from there, and that suggests to me that we may see a continuation of the downward move. This will be especially true if the oil markets start to rally, which looks as a real possibility. I believe that the 1.20 level underneath is going to be massive support, so break down below there could accelerate the downward momentum. At that point, I would anticipate that the market should go to the 1.15 level underneath. That’s an area that I think would make a nice target. If you look at the overall long-term trend of this market, we have decidedly turned the corner as of late, so therefore I am a bit cautious about going long in this market until we can clear a major hurdle, which I think takes form in the 1.26 region. Until then, I remain suspicious about rallies going forward, and I believe that the Canadian dollar should continue to pick up momentum as although the Federal Reserve is likely to raise interest rates, Canadian economic numbers continue to suggest that the Bank of Canada will have to be aggressive as well. Ultimately, this becomes an interest rate differential playing and therefore we could see bearish pressure. However, if the oil markets rollover we could see volatility to the upside. Again, if we break above the 1.2650 level, I think that it would change everything and it should cause a massive move higher. However, I suspect that the easier path is to the downside, although we may see a bit of volatility before we finally break down.
USD/CAD Video 25.9.17
This article was originally posted on FX Empire
