USD/CAD Price forecast for the week of January 8, 2018, Technical AnalysisThe US dollar gapped lower against the Canadian dollar at the open of the week, then went sideways for most of the time, only to break down after the disappointing jobs number out of America, coinciding with a strong employment number out of Canada.
The US dollar fell against the Canadian dollar immediately during the week, but found a bit of support at the 1.25 handle. Eventually though, we get the jobs number out of America failing to reach expected numbers, while the Canadian jobs number was better than anticipated. This set up a perfect storm to send the market lower, and it now looks likely that we will continue to go to the downside. This is being exacerbated by the oil markets rally in, so I think given enough time we will probably go back towards the lows, which was a test of the 1.20 level. Pay attention to the oil market, because of it does rally, that will be one of the biggest reasons for this pair to continue to fall.
However, if we broke above the 1.26 level, I think the market would continue to go higher, perhaps reaching towards the 1.29 level, followed by the 1.30 level after that. In general, this is a market that I think has plenty of bearish pressure in it, but I think breaking down below the 1.20 level would be very difficult to do, so I do not expect to see the market break down below there anytime soon. The marketplace continues to be negative, but of course it is almost always choppy due to the interconnectivity between the US and Canadian economies. I remain bearish, but I also recognize that there will be bumps along the way.