US dollar sideways against Canadian dollar

The US dollar has gone sideways in general, as the Canadian dollar has held its own. But quite frankly we have seen such a large move over the last couple of sessions that it’s likely we will need to catch her breath before going higher. I think that short-term pullbacks will probably offer value the traders are willing to take advantage of, with the 1.2750 level offering the first obvious support barrier as it was so resistive.

I believe that the market will eventually find its way towards the 1.30 level, but there is a lot of noise between here and there. Because of this, I think it will be choppy, yet slightly positive trading. Remember, these economies are highly intertwined, which creates a lot of back and forth action in a marketplace that sees a lot of commercial trading as both countries are constantly sending products across the border. I do think that the miss in Canada with inflationary numbers will continue to weigh upon the Loonie, but I think that the upside pressure is somewhat limited in the short term. If we were to break above the 1.30 level, then we could go much higher, in fact, I believe that the market would become more of a “buy-and-hold” situation when it comes to that move. I think that we will eventually rally, especially if the housing bubble in Canada starts to unwind a bit.

USD/CAD Video 25.04.18