USD/CAD Forecast: Rallies Into The Weekend Against Its North| MENAFN.COM

Saturday, 04 February 2023 06:28 GMT

USD/CAD Forecast: Rallies Into The Weekend Against Its North

(MENAFN- Daily Forex)
  • The usd/cad has rallied a bit during the trading session on Friday as the US jobs never came in a little stronger than anticipated.
  • The market is likely to continue to see a lot of noisy behavior, and therefore it's very possible that we could continue to see multiple opportunities to take advantage of volatility .
  • After all, these 2 economies are highly correlated and trade quite frequently.

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Looking at this chart, it looks as if the 1.35 level will continue to be an area of resistance, but if we can break above the highs of the last couple of days, it's likely that the US dollar will then go look to the 1.38 level. 1.38 level opens the possibility of a move to the 1.40 level, but ultimately, I think this is a situation where the oil markets have a lot to say as well, and they of course did rally a bit even though the US dollar did at the same time. Over the longer term, the US dollar works against the oil market most of the time, but even when the dollar does not, a rising oil market will often lift the Canadian dollar. Pay Attention to Global Demand

I would anticipate that there should be significant support near the 1.32 level, and then again at the 200-Day ema . The 200-Day EMA is an indicator that a lot of people pay close attention to, so I would anticipate that the longer-term algorithms may come into the picture there as well. All things being equal, I think that between now and the end of the year we will continue to see issues with volume, and that will make things choppy, to begin with. Also, we must pay close attention to the idea of global demand for crude oil because that in and of itself is going to have a major influence as well.

With lightning volume, the choppiness in this pair and many others toward the end of the year will either be very short-term or have wild swings. A lot of that is going to come down to the news flow, and you never really know what you're going to get until you get there. The later we get into the month, the more dangerous this is going to be.

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