USD/CAD forecast for the week of October 30, 2017, Technical Analysis

The US dollar rallied significantly during the week, breaking above the 1.28 handle. It now looks as if we are trying to reach the 1.30 level above, which of course will have a certain amount of psychological influence. I think it will be interesting to see how this market reacts at this point, because it was so important in the recent past. A break above the 1.30 level would be an extraordinarily bullish sign, and should send this market towards the 1.35 level above. However, there’s a lot of noise in that general vicinity, so I think that we will struggle to go higher at the same rate that we have during this previous week. Alternately, if we form some type of resistive candle at the 1.30 level, that would make a lot of sense as we could at least pull back, if not continue the selloff.

Oil markets will have their say, and although they have been trying to break out to the upside, the US dollar continued to rally. However, if we break above the $53 level on the WTI Crude Oil market, it’s possible that the Canadian dollar starts to strengthen, and we roll over. There’s a lot of moving pieces in the short term, so having said that I think that the next week will be very important, so the close of the candle will probably give us clues as to where we go next. I think this 1.30 level is vital, and therefore should be paid close attention to. If we do break down, I think the 1.25 level will be targeted, and then eventually the 1.20 level. A break out to the upside although slow, could drive this market to the 1.35 level, and then eventually the 1.40 level.

USD/CAD Video 30.10.17