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USD/CAD Price forecast for the week of December 4, 2017, Technical Analysis

Christopher Lewis
Updated
The US dollar continues to grind sideways against the Canadian dollar and what I believe is a reflection of the uncertainty in the oil markets.

The US dollar initially rally during most of the week, reaching towards the 1.29 handle but finding enough sellers in that region to turn around and form a shooting star. That of course is a negative sign, but I also recognize that there is a lot of support just below. Because of this, I believe we will more than likely find noise below that could turn things back around. Ultimately, if we break above the top of the shooting star for the week, we will then go looking towards the 1.30 level, which is obviously a significant round number. If we can break above the 1.30 level, then I think the market will reach towards the 1.35 handle over the longer term. I think that we are going to continue to see volatility and uncertainty and the oil markets are going to have.

In general, I think volatility is here to stay, especially considering that the oil markets have so many different moving pieces. However, I do believe that eventually we will find a reason to go higher, be it interest rates in America rising, or perhaps it is the Toronto housing bubble. Either way, I think there is reason to think that we will find a reason to go higher. That doesn’t mean that it will be easy, and quite frankly this market does tend to be very choppy. If we were to break down below the 1.25 level though, that would be very negative sign and probably send this market looking for the 1.20 level underneath, which has been massively supportive.

USD/CAD Video 04.12.17

This article was originally posted on FX Empire

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