Advertisement
Advertisement

USD/CAD Price forecast for the week of March 26, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Mar 24, 2018, 05:51 UTC

The US dollar fell significantly against the Canadian dollar during the week, after breaking out the previous week. We have fallen enough to find significant support, and this tells me that we are going to see a lot of noise.

USD/CAD weekly chart, March 26, 2018

The US dollar has fallen rather hard against the Canadian dollar during trading this past week, as we started closer to the 1.31 handle, but then sliced through the 1.30 level. Oil markets have done quite well, so that of course makes a significant amount of sense. I think that the market will continue to find reasons to chop around though, with the 1.28 level looking somewhat supportive. We have seen a cluster in this area previously, and therefore think it will act as support now. However, this is most certainly a negative sign, as we have formed what would essentially be thought of as a “two-week shooting star”, as we have done a complete round-trip.

USD/CAD Video 26.03.18

The alternate scenario of course is that we could break above the top of these 2 candles, and that would be a very bullish sign. However, I think that the pair is getting ready to grind back and forth with trade war fears out there, and of course the oil markets being all over the place. I think it’s probably going to be a short-term traders market over the next week, with perhaps the 1.28 level being the floor, while the 1.31 level could be the ceiling. I think that we will continue to see very choppy and difficult conditions, but if we broke above the top of the 2 candles, I think it becomes a clear trade to the 1.35 handle. Pay attention to WTI Crude Oil, if it breaks above $70, that could be enough to break this market down.

About the Author

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.

Did you find this article useful?

Advertisement