The US dollar has broken down rather significantly during the trading session on Wednesday, slicing below the 1.29 handle, and then reaching down to the 1.28 level. This is a market that continues to see a lot of noise in this area, but quite frankly with the oil market rally in the way it has during the day, it makes sense that the Canadian dollar will pick up strength. I believe that the market will probably find buyers underneath somewhere, but the 1.30 level has been extraordinarily resistive several times over the long-term, and I believe that the market should continue to be respective of this area. However, if we were to break above that area the market will explode to the upside.
I believe that the 1.28 level underneath will be massive support, but if we break down below that level, the market probably reaches down to the 1.2750 level underneath. That’s an area that has been important more than once, as the market has seen both support and resistance at that level. The massive selloff during the day should present some type of value though, unless of course the oil markets explode to the upside. While they have rallied nicely and broken above resistance as of late, this latest move shows just how erratic this pair tends to be.
USD/CAD Video 10.05.18
This article was originally posted on FX Empire
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