The US dollar exploded to the upside against the Canadian dollar during the trading session on Friday, as the jobs report came out a solid 200,000 jobs at it for the month of January. The 1.24 level offers a lot of resistance, but if we can break above it, the market will more than likely go looking towards the 1.25 level next, with a lot of noise between here and there. We are bit overdone though, so I would not be surprised at all to see a short-term pullback. If we break below the 1.2350 level again, that probably sends this market to lower levels, perhaps reaching towards the 1.2275 level again.
Oil got absolutely pummeled during the trading session, and that of course helps push this market higher. If oil recovers, and I think it will eventually, we could see this market fall. At this point, I think you should be paying attention to oil more than this pair, because it is obviously the main driver of where the Canadian dollar and its value is going. If we were to somehow break out to the upside and then eventually clear the 1.25 level, this market could go as high as 1.30 next. Alternately, if we break down below the 1.2250 level, then the market is going to go hunting for the 1.21 level underneath. I expect a lot of noise, but that’s nothing new here.
USD/CAD Video 05.02.18
This article was originally posted on FX Empire
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