Hey everyone, today we’ll be looking at USD/CAD and try and predict its movement over this coming week.
First this will be a very interesting week as the Fed sits down for their first meeting of the year after a month long government shut down. No one knows whats really going through Powell and his gang minds but it is least likely that there will be a change in interest rates. We also have the most awaited NFP coming out on Friday with lower expectations due to government closure.
We have a bullish outlook for the pair and monitoring for a break of 1.3286 which was last week’s high and targeting 1.37. That is a worthwhile move collecting 100 pips.
We are taking this play also on the weakness of the Loonie. Crude oil has reached a key resistance area and has resumed its bearish trend. Crude prices are highly related to the CAD and might push it even lower
Yes I understand what we are discussing, USDCAD. While Oil is a string influential commodity and the side effects can cause a ripple effect a drop of water in a pool the USD still rules which has the greater long effect on the USD crosses.
The USD always rules but its not at its strongest right now. Risk aversion and tightening rates are keeping it hostage.The number of large speculators long on the greenback has been decreasing since early November. USD/JPY is always a great indicator of the strength of the dollar and its getting beat
Well that’s it for me, while I have an ok understanding of macroeconomics there are bigger things at play here. I trade the USD crosses daily based on the USD price action movement.