- The US dollar has shown itself to be very noisy against the Canadian dollar over the last couple of weeks.
- That should probably continue mainly due to the fact that we are now through the elections in Canada.
- At this point in time it looks like everything's in a holding pattern when it comes to risk of tariffs being implemented either more or less against the Canadians.
Ultimately, I think this is a scenario where we are trying to build some type of base, but we haven't seen the move higher to really get things going. So, with that, I think you're just in a waiting pattern here. If you were to break down below the 1.3700 level, then the dollar probably rolls over completely.
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All things being equal though, this is also a market that I think is probably going to have to see a move above 1.40 to really get exciting to the upside. At that point, then the market goes looking to the 1.42 level. That being said, I think you end up being very cautious about jumping in, but letting the market break out of the range between 1.37 and 1.40 to give you an idea of where the next big move is.
Now, on the other hand, if you were a short-term range bound trader, then this might be a decent market for you as we continue to see a lot of chop in a very tight range. So, it really comes down to your timeframe. Longer term, we have been bullish for a while. We are coming up to a major area that could be support, but right now, trading is pretty sloppy as a lot of it's based on the latest headline coming across the news wires.
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