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USD/CAD Forecast August 7, 2015, Technical Analysis

By:
Christopher Lewis
Updated: Aug 7, 2015, 03:40 UTC

The USD/CAD pair fell during the course of the session on Thursday, as we continue to meander at the moment. However, you have to keep in mind that the

USD/CAD Forecast August 7, 2015, Technical Analysis

The USD/CAD pair fell during the course of the session on Thursday, as we continue to meander at the moment. However, you have to keep in mind that the Nonfarm Payroll Numbers come out of America today, just as Unemployment Numbers come out of Canada. Because of this, this could be a very volatile market during the session today. We look at the 1.30 level as a major support level, and the 1.28 level below there as the “floor” in this market. We are looking for pullbacks and show signs of support in order to start buying yet again, as the longer-term uptrend seems to be much higher.

We have recently broke above a significant barrier in the form of the 1.30 level, which of course was the resistance that caught the massive moves higher after the financial crisis. With this, the market now looks as if it’s ready to continue going higher, simply because we have broken above that barrier in it should now be a very bullish trend. The oil markets of course are not helping the Canadian dollar at all at this point, so going forward we feel that this market will probably continue to be a “buy-and-hold” type of situation, as well as a market that you can buy every time it dips. The interest-rate differential a shrinking between the 2 countries, as the Bank of Canada has recently had a surprise cut.

We believe that the 1.28 level is the “floor” of this market, so quite frankly we are to simply not looking for selling opportunities at all currently. We believe that this is a multitier move waiting to happen, and that we could go several thousand pips higher over the next couple of years. With this, we look at this market is one of her favorite trends at the moment to follow. We recognize that eventually oil prices will recover in that of course will help the Canadian dollar, but we seem to be a very long way from that right now and therefore continue to look upon the US dollar with favor.

 

USD/CAD Forecast August 7, 2015, Technical Analysis
USD/CAD Forecast August 7, 2015, Technical Analysis

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.

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