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US dollar continues to chop around the 1.26 level against CAD

Christopher Lewis

The US dollar continues to be very choppy in general, and it looks likely that we are going to see more of the same in this currency pair as the economies are so intermingled. I believe that the oil markets obviously have the usual influence as well, so if they roll over we may get a bit of a bounce. The 1.2750 level above would be a massive “ceiling” in the market. If we can break above that level, then I think we could go higher but I also believe that some type of exhaustion between here and there should be and I selling opportunity.

I believe that we are still going to go looking towards the 1.25 level underneath, as it is a large, round, psychologically significant number. The area down there will of course cause a lot of noise and interest, and I think it will be difficult to break down below the 1.25 level as it is such a psychologically important level. With the amount of volatility that we continue to see in this market, I believe that you should probably start out small, and then add every time it looks like we are going to continue to go lower. The marketplace will obviously be very choppy, but it certainly appears that we are in a strong downtrend, so there’s no need to find it, simply wait for the market to give you an opportunity to take advantage of.

USD/CAD Video 13.04.18

This article was originally posted on FX Empire