US dollar pulls back against Canadian dollar on Thursday

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Updated: Apr 20, 2018, 05:03 UTC

The US dollar pulls back a bit during the Thursday session initially, but also turns around find a bit of support at the 1.26 region. I think at this point it comes down to oil, and what it does next. The oil markets have been very bullish, so that would perhaps pray tell a move lower in this pair, but it looks like were trying to see some type of fight.

The US dollar has pulled back against the Canadian dollar during Thursday trading to start out the day, but we have also seen a bit of a bounce from the 1.26 region, so I think the next couple of sessions will be crucial. If we can break above the 1.2650 level, that should send this market towards the 1.2750 level next. Otherwise, we could see the markets fall towards the 1.2525 level again, which was the scene of a bounce couple of sessions ago.

There is a little bit of a “risk off” attitude during the early Thursday hours in America, so perhaps we may see this market rally a bit, but I think either way it’s going to be relatively tight. The 1.25 level underneath should be a massive floor in this market, and I think breaking down below there could send this market looking towards the 1.23 handle. Beyond that, we could go to the 1.20 level after that. I anticipate a lot of noise regardless, and short-term trading will probably continue to be the best way to deal with this market. Ultimately, I think that we should continue to see short-term setups at best, but those couple of areas that I have mentioned will give us a bit more clarity once they are broken through and confirmed as broken.

USD/CAD Video 20.04.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.