USD/CAD Forecast Today - 17/07: USD Bounces Vs CAD (Chart)
Date
7/18/2024 1:55:43 AM
(MENAFN- Daily Forex)
It's obvious that the market is struggling a little bit of a hesitation here. And I think really at this point in time, the market is likely to continue to see a lot of noisy behavior. But I do believe that in the longer term, we should continue to go higher.
The 50 day EMA sits just below, and that should offer a potential buying opportunity. If we break down below the 50 day EMA, then we could open up a move down to the 1.36 level, which sits above the 200 day EMA. All things being equal, the USD/CAD market is a market that, more likely than not, we'll go looking to the 1.38 level above.
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The 1.38 level is the top of the overall consolidation over the last several months. So, I do think that holds a certain amount of weight when it comes to this pair. And keep in mind that the US dollar, of course, is a bit of a safety currency. And at the same time, there is a lot of speculation as to how the Federal Reserve is going to play this market going forward.
Will they cut interest rates? That seems to be the question on everybody's mind. It's probably worth noting that we recently bounced from the 200 day EMA. So, it's an area where you would expect a little bit of value hunting, but it does look like we are stalling a bit during the Tuesday session. Perhaps we got a little bit ahead of ourselves.
For myself, I'll be looking at a pullback and as a potential buying opportunity, unless of course it's some huge negative candlestick to the upside. I do think that breaking above the 1.38 level would be significant, but I just don't see it happening in this environment. We are in the dead of summer, and it looks like we're just chopping back and forth in a general amount of sideways confusion.
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