USD/CAD Price Forecast January 25, 2018, Technical Analysis

The US dollar has broken down during the trading session on Wednesday, breaking below the 1.24 handle. By doing so, it frees up the market to go much lower, perhaps down to the 1.23 level, and then eventually the 1.21 level. Longer-term, I anticipate that the 1.20 level is going to be the target, but this pair tends to be rather choppy based upon the economies being so intertwined, and of course the influence of crude oil, which is always volatile.

I suspect that any rally now should be a selling opportunity as we continue to see a general run from the greenback into other currencies, but I do not like the Canadian dollar when compared to several other currencies around the world. Although I think you do have more room to run to the downside, there’s more money to be made in other places, such as the British pound or the Euro. The volatility of course will continue to be a major issue, but I think that the selling of this market is the only thing you can do, because we have seen so much in the way of negativity as of late. If oil markets roll over, that could send the market higher, but I don’t have any interest in buying this market until we break above the 1.25 level, which looks to be somewhat unlikely at this point, therefore I look at exhaustion as short-term trading opportunities.

USD/CAD Video 25.01.18