USD/CAD Forecast Today 07/11: Pressures Resistance (Video)


(MENAFN- Daily Forex)

  • The US dollar shot straight up in the air to test the 1.3950 level against the Canadian dollar during trading on Wednesday as we have seen a lot of upward momentum after the US election.
  • At this point in time, the question then becomes whether or not we can continue to build up the necessary pressure and if we can, then the 1.40 level will be the next target and anything beyond that allows the market to go much higher.
  • Short-term pullbacks should be buying opportunities, and I do think that the 1.38 level underneath is going to be a major support level.

Furthermore, we also have the 50-day EMA racing toward that area offering technical support as well. In general, you should take a look at the size of the candlestick as a sign as to how important this momentum is and the fact that we probably will get follow through sooner or later. If we were to turn around and break down below the 1.38 level, it would obviously be a very negative turn of events. But at this point in time, I don't think that's very likely. We do get employment numbers out of Canada on Friday. And on Thursday, we get interest rate decision and statement coming out of the Federal Reserve in America. So, I think that could cause quite a bit of volatility as well.

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Nonetheless, unless we see some type of major shakeup here, I think we will eventually break out to the upside and allow the US dollar to finally break above the 1.40 level and send the greenback much higher against its northern neighbor. If that happens, you will more likely than not see the US dollar rally against almost everything out there, not just the Canadian dollar. However, we could also make an argument that it might be the Loonie that gets crushed against most things as well.

EURUSD Chart by TradingView

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