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USD/CAD Price Forecast December 18, 2017, Technical Analysis

Christopher Lewis
Updated
The US dollar initially fell against the Canadian dollar, but then shot to the upside during the day on Friday, showing strength yet again.

The US dollar initially pulled back during the trading session on Friday, reaching down towards the 1.2750 level. That is an area that offered enough buying opportunities and pressure to turn the market around, and we have skyrocketed sense, gaining over 100 pips. By doing so, we had formed a bit of a “W pattern” on the hourly chart, and it looks likely that the buyers are going to continue to go to the upside and continue to put money behind the greenback as the Loonie continues to struggle due to oil markets that are less than impressive, so I believe that we will continue to see bullish pressure in this market, as oil is such a large contributor to Canadian dollar strength.

I believe that the impulsive move during the session on Friday suggests that we are going to continue to see nice buying pressure, and the weekly candle is a massive hammer. The hammer of course is a bullish sign, and I believe that we will try to break towards the 1.30 level given enough time. I think adding on dips going forward is the best way to go. I don’t like selling this pair, and I also believe that the housing bubble in Canada could be a massive issue. Overall, I think that it’s only a matter of time before we break above the 1.30 level, which would offer a “buy-and-hold” trading opportunity. Overall, I believe that the market is going to go looking towards the 1.35 handle during the next several weeks, if not months. Volatility will be the mainstay of this pair, but I think bullish pressure is taking over.

USD/CAD Video 18.12.17

This article was originally posted on FX Empire

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