USD/CAD Forecast Today - 04/10: USD Gains (Video & Chart)
Date
10/4/2024 2:44:25 PM
(MENAFN- Daily Forex)
At this point in time, it looks like the US dollar continues to see plenty of buyers against its northern neighbor as the 1.3450 level has offered support yet again. This is an area that's been important multiple times and now looks like it has launched the greenback straight up in the air again. That being said, I do see a significant amount of resistance just waiting to happen near the 1.36 level.
That's an area where we have the 50 day EMA and the 200 day EMA indicators. So, a little bit of technical resistance could be expected. Above there, the 1.3650 level has also been noisy. And in fact, I believe that the area between the 1.36 level and the 1.3650 level is essentially one big support resistance zone We Break Higher
If we can clear all of that, then it opens up a move to the 1.3750 level. Keep in mind, crude oil really took off and that's part of what we had seen strengthen the Canadian dollar, but furthermore, we have to keep in mind that the U.S. continues to show signs of slower, but still economic strength while the rest of the world is weakening. If that's going to be the case, then we will almost certainly see this market stay in its larger and longer term consolidation range, which is essentially its normal behavior anyway, as these two countries are so highly intertwined with Canada sending most of its exports south into the United States.
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When you look at this pair, it makes a certain amount of sense that we would see a lot of choppiness, especially as the market continues to go back and forth between a risk on scenario and a risk off scenario. Ultimately, the United States dollar is considered to be a safety currency, and you need to keep that in the back of your mind. Furthermore, you also have the Canadian dollar that tends to be driven by crude oil and commodities overall.
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