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US dollar continues to chop against the Canadian dollar on Friday

Christopher Lewis

The US dollar has gone back and forth during the trading session on Friday, testing the 1.2750 level. That’s an area that is important, as you can see over the last several months. The 1.2750 level seems to be a bit of “fair value” when it comes to this pair, as we have been bouncing around between the 1.30 level and the 1.25 level as of late. I think that the market should continue to be very noisy, so keep that in mind. I think that oil market should be followed, and if they rally that could send this market lower. Otherwise, if the market breaks out above the top of the shooting star from the Wednesday session, then I think the market could go to the 1.30 level above, which is the next major resistance barrier.

A breakdown below the hammer that formed on Friday would be a negative sign, perhaps sending this market down towards the 1.25 level underneath. Ultimately, this is a market that continues to show volatility, but that’s not a huge surprise considering that the economies are so intermingled. There are a lot of concerns when it comes to a trade war between the United States and China, but in an ironic twist, that might be good for both of these currencies as they will feed each other economically. The market continues to be very noisy in general, so I would put a small position on first, and then add once the market is in your favor.

USD/CAD Video 09.04.18

This article was originally posted on FX Empire