USD/CAD Price Forecast January 22, 2018, Technical Analysis
The US dollar has gone sideways overall during the trading session on Friday, as we have seen during most of the week. We had a little bit of noise during the Wednesday session as the Bank of Canada rose interest rates again, but markets calmed down afterwards as we had anticipated that happening. Because of this, the market looks very likely to continue to struggle to find its feet, especially considering that there are a lot of concerns about the longevity of the NAFTA agreement, which could put a lot of pressure on the Canadian economy. At the same time, the US dollar has been so soft that it has push this market to the downside.
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Ultimately, oil has it say as well, but oil is taking a 2nd seat to the NAFTA situation. I think that short-term back and forth trading should continue to be the overall attitude of this market. I believe that the market continues to see choppiness, so use something like a stochastic oscillator to give you signals until we break above the resistance at 1.25, or the support at the 1.24 level. In the meantime, does offer nice scalping opportunities, but you must be nimble and perhaps use very short-term charts to take advantage of this. However, we will eventually break out of this range, and once we do it will be a situation where you can hang on to the trade for a longer-term move, to at least the 1.29 level above, or the 1.20 level on the bottom.