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USD/CAD Daily Fundamental Forecast – January 13, 2017

By:
Colin First
Published: Jan 13, 2017, 01:36 UTC

We had mentioned in our forecast yesterday that if the dollar weakness continued, we could soon be making our way towards 1.3000 in the USDCAD pair and we

USD/CAD Daily Fundamental Forecast – January 13, 2017

We had mentioned in our forecast yesterday that if the dollar weakness continued, we could soon be making our way towards 1.3000 in the USDCAD pair and we had also mentioned that the price action here would be key and that we are likely to get a bounce from here and also that this region would be a good place to go long again with a stop loss below 1.3000 and this turned out to be the perfect trade yesterday. During a major part of the day, we did see dollar weakness and we did see that the oil prices continued to hold up and this was enough to push the pair towards 1.3000 and it traded briefly just above 1.3000.

But what followed was a smart recovery in the prices as a wee bit of dollar strength returned in the morning and we also saw the fears about the agreement for production cut continuing to linger in the market and this kept the CAD strength under control. A combination of these factors helped to push the pair above 1.3100 and it trades just below 1.3150 as of this writing. We have been mentioning that any kind of correction in this pair has always been met with some quick and large buying which has helped this pair to bounce back everytime and this is what we saw over the last 24 hours. It is such buying and bounces that makes us continue to believe in the uptrend in this pair and our target of 1.4000 in this pair.

USDCAD Hourly
USDCAD Hourly

Looking ahead to today, we do not have any major news from the Canadian region for today but we have the retail sales and the CPI data from the US region which will be watched closely by the market to see if the US continues to throw up good data to help the Fed in its decision making with regard to rate hikes. If the data is good, then we might see the dollar continue to make a recovery which began this morning.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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