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MENAFN- Daily Forex)
The US dollar has rallied a little bit during New Year's Eve as it looks like we are going to, in the year, on the right foot. All things being equal, it's worth noting that the US dollar will continue to be stronger than most other currencies and most certainly Canada as it has a failing government. The interest rate differential alone should continue to drive the US dollar higher against most currencies.
In Canada, we have a mess, so I think there's a really good shot that we continue to see this market break towards the 1.45 level. At this juncture, any short-term pullback will more likely than not end up offering buying opportunities, perhaps all the way down to the 1.42 level. The 1.42 level was an area of importance a couple of times, and now we have the 50-day EMA racing offering a little bit of support also. In this environment, I just don't have any interest in trying to get too cute here.
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I think you've got a situation where every time we dip, it is going to end up being a bit of a buying opportunity. If we can break above that 1.45 level, then we go looking to the 1.4750 level. Keep in mind that non-farm payroll numbers in America don't come out until January 10 the Short Term
So, the next couple of days could be more or less a lot of sideways trading as most traders probably aren't putting money to work until Monday, the 6th at the earliest expect a few more quiet sessions, but the reasons the US dollar has been rallying have not changed. We have interest rates in America, flexing and muscles again. I just don't see that changing anytime soon, as the market continues to see a lot of questions about momentum, and the recent ceiling that we have seen form.
EURUSD Chart by TradingView
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