USD/CAD Price Forecast January 17, 2018, Technical Analysis
The US dollar went back and forth during the trading session on Tuesday, as we have seen the market use the 1.24 level as support. If we can break above the 1.2460 level, then I think the market probably goes to the 1.25 handle above. If we were to break past that level, then the next target would be a 1.2575 handle. In general, I don’t like trading this market right now, because there are so many external influences in this market, as there are serious concerns that the Americans could scrap NAFTA. Beyond that, the oil markets have their typical influence on this pair, while the housing bubble in Toronto also concerns traders.
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We also have the Canadian economy that is heating up, so we have so many things going back and forth and pulling this market in several different directions that this pair is probably best traded from a range bound attitude, and in small bits and pieces. In fact, I suspect that this market is going to be very difficult over the next couple of weeks, at least until we get an idea as to what the Bank of Canada is going to do, as they have a lot of moving pieces to deal with. Expect volatility, so therefore small position sizing will be paramount when it comes to protecting your account if you choose to trade the Loonie.