USD/CAD Daily Fundamental Forecast – September 25, 2017

The pair has moved higher since Friday as the dollar began to regain back some of its strength. But it has to be said that the dollar has managed to hold steady against most of the other important currencies due to the fact that the other currencies have been weak rather than the dollar being able to recover its strength. This is likely to last in the short term and during this period, we can expect the prices to consolidate.

USDCAD Likely to Consolidate in Short Term

The pair has moved above the 1.23 region once again and it has been chopping around on either side of 1.23 over the last few days as it has been unable to make up its mind on which direction it wants to go, at this point of time. The strong and steady oil prices continue to lend some good support to the CAD and this has been weighing on the pair over this period. On the other hand, it can be seen that the dollar is waiting to move up but its time has not arrived as yet and this is what is holding it back.

We expect this consolidation to continue for sometime and there might even be a visit back to the lows of the range near the 1.2060 region over the next few days. If such a kind of move happens, it would only mean that it would be an opportunity to buy the pair at its lows for the next bounce. It seems that the consolidation is only making the pair more strong and the fact that it has not moved down and the gathering of strength by the dollar points to a move up in the near future in this pair.

Looking ahead to the rest of the day, we do not have any major economic news from Canada and the US for the day and so we can expect the USDCAD pair to continue to trade in a buoyant manner for the rest of the day.