The US dollar has gone sideways during the trading session on Friday, as we hover above the 1.25 handle. This is an area that of course attract a lot of attention as it is a large, round, psychologically significant number, and therefore I think there will be buyers occasionally as we go forward. I think short-term traders will probably be attracted to this market, as there are a lot of crosswinds when it comes to the marketplace. After all, the Canadian dollar must worry about the Toronto housing market, which is in a massive bubble. Also, oil markets have been rallying so that works in the opposite direction. At the same time, I think that we are seeing is a general move of money from North America to Europe, based upon both the EUR/USD and GBP USD currency pairs.
In general, I believe that this market will continue to be very choppy, and I think that we will have a lot of back and forth trading. Even if we break down below the 1.25 handle, the market probably goes looking towards the 1.2450 level underneath that is going to be supportive based upon previous action. Alternately, if we break above from here, we probably go to the 1.29 level if we get enough of a move. I think that this market is probably one that’s best left alone, unless of course you can trade from very short-term charts. Otherwise, I think we will need to see some type of momentum to get involved with a significant amount of money.
USD/CAD Video 15.01.18
This article was originally posted on FX Empire
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