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USD/CAD forecast for the week of February 26, 2018, Technical Analysis

Christopher Lewis

The US dollar has been bullish over the course of the week, meaning that the 1.25 level has continue to attract a lot of attention. This is an area that has previously both been resistive and supportive, so market memory dictates that it will continue to attract attention obviously. I think that if we can break above the 1.30 level, the US dollar should continue to climb towards the 1.35 level, possibly the 1.37 level.

Alternately, if we were to break down below the 1.25 level, we could go down to the 1.22 level after that, that is a more significant support level. I think that eventually we will rally, mainly due to the negativity that I feel the oil markets are going to show. Longer-term, I think we could go as high as the 1.37 level, but it’s going to take a while to get there. The pair tends to be very choppy, mainly because the 2 economies are so highly intertwined. Longer-term though, I think that we are going to see strength. However, if we were to break down below the 1.21 level, the market collapses and goes much lower. This would probably due to a spike in the value of oil, or perhaps the US dollar collapsing. Overall, I believe that the market should continue to be noisy, but also positive. Longer-term traders will need to be patient, and perhaps try to add to their position slowly, as the choppiness will make it very difficult to deal with.

USD/CAD Video 26.02.18

This article was originally posted on FX Empire