The US dollar fell against the Canadian dollar again on Friday, as we continue to see the greenback suffer. The US dollar has fallen against most major currencies around the world, and of course the Canadian dollar was always going to be the same. The housing market in Toronto is in a massive bubble, and this could end up being a problem for the Canadian dollar, but it’s obviously something that the Forex markets are not paying attention to currently. With oil markets rally in the way they have, currency traders have jumped into the Canadian dollar in with both feet, as seen on this chart. I do recognize that the 1.25 level underneath is going to be supportive though, so it’s likely that breaking below there is going to take a significant amount of effort.
If we do break down below the 1.25 level, the market then drops down to the 1.20 level after that. Ultimately, this is a market that breaking down below there could be very resistive, and it could happen rather quickly as it would be a serious psychological break. Alternately, if we bounce from the 1.25 level, it’s likely that the buyers will jump in and perhaps try to reach towards the 1.29 level after that. I would need to see this market form a positive and bullish daily candle to start buying though, as volumes will be an issue. With the jobs number coming out this week, it’s likely that this pair could see a lot of action towards the Friday session.
USD/CAD Video 02.01.18
This article was originally posted on FX Empire
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