US dollar breaks down against Canadian dollar on TuesdayThe US dollar has broken down significantly during trading on Tuesday, as the markets have entered a “risk on” move. I think that at this point it’s likely that we will continue to see a lot of bearish pressure, and it certainly has changed the attitude of traders of the last couple of days.
The US dollar has broken down during the trading session on Tuesday, slicing below the 1.27 level handily, and looking very likely to go down to the 1.25 level after that. Pay attention to the will markets, because if they continue to rally, it’s likely that this pair will roll over further. I think that the market is reacting in a very “risk on” attitude overall, as the Chinese have shown signs of trying to temper the situation between the US and Chinese officials. I believe that the market is probably going to be very difficult, but overall the attitude of this pair seems to have changed rather significantly, and it looks as if we are going to go down to the 1.25 level rather quickly.
The alternate scenario of course is that the market breaks above the 1.28 level, and then should send this market to much higher levels, perhaps the 1.30 level above which has been important in the past. Obviously, oil markets will make a lot of difference as to where we go next, but currently it looks as if the overall attitude of markets is very much “risk on”, so I think that this pair will probably continue to show a downward proclivity. If we were to break down below the 1.25 level, that could send this market much lower. Expect a lot of noise, but certainly it looks as if the market is starting to make up its mind.