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USD/CAD Price forecast for the week of February 19, 2018, Technical Analysis

Christopher Lewis
Updated
The US dollar has gone back and forth against the Canadian dollar during the week, as we have found the 1.25 level to be somewhat supportive. Looking at the weekly chart, we have made a “higher low”, so we have potential for a move to the upside again.

The US dollar has gone back and forth against the Canadian dollar during the previous week, as the 1.25 level has been very important, and more importantly, we have formed a nice “higher low” on the weekly chart. Because of this, I think that we are trying to find the strength to rally again, but obviously the oil markets have a lot of influence here as well. If oil markets roll over, then that should push this pair higher.

I believe that the 1.29 level above is resistance, and that it extends to the 1.30 level. A break above that level should send this market much higher, as it would be a significant sign of strength, and a “higher high”, confirming the trend changing to the upside yet again. Although I believe this happens, it’s not until we get that moved that I think it becomes more of a “buy-and-hold” situation.

If we break down below the bottom of the weekly candle we just formed, we could drop to the 1.23 level underneath, and then potentially to the 1.21 level after that. That would coincide with a higher price of the oil markets I suppose, so pay attention to the WTI Crude Oil charts. Longer-term, I believe that we will start to look at the Greater Toronto Area housing markets, which are in a massive bubble, so it’ll be interesting to see if the Canadian dollar reacts to that potential situation.

USD/CAD Video 19.02.18

This article was originally posted on FX Empire

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