The US dollar has gone back and forth against the Canadian dollar during the week, forming a slightly positive candle. However, the market seems to be struggling a bit, as the 1.30 level has been so important in the past. I think that we will continue to look at short-term trading more than anything else, it looks currently as if the 1.3050 level above is resistance, and the 1.29 level underneath is support. As we continue to see this market go back and forth, I think that short-term trading is probably the best thing you can do. You could be involved in some type of short-term range bound trading strategy, but it’s not until we break down below the 1.2750 level that we could start selling, at least for a longer-term move. Until then, I’ll be using a stochastic oscillator based short-term system. If we can break above the 1.3050 level, then I think the longer-term traders could go along and hang on for a move to the 1.35 handle above.
Oil markets have their usual influence on this market, so if they start to rally again that could push this market to the downside. However, if they sell off then we could see a move to the upside.
USD/CAD Video 11.06.18
This article was originally posted on FX Empire