USD/CAD Forecast Today 07/01: Volatile Day (Video + Chart)

(MENAFN- Daily Forex)

• The US dollar plummeted against the Canadian dollar during Monday's trading session following a Washington Post report-later debunked-alleging that the United States was preparing to impose tariffs on nearly every major economy.
• The report caused significant volatility in the dollar and drove U.S. yields lower, but the US dollar regained strength after Trump publicly dismissed the claims as an absolute falsehood.
• Furthermore, Justin Trudeau has now announced that he's willing to step down as PM of Canada, but only after an election for leadership of the Liberal Party. So, Parliament in Canada won't meet until the end of March. That'll be interesting, as there better not be any problems in Canada.

Plowing Higher Longer Term

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So, with that being said, it does look like the US dollar will continue to plow higher against the Loonie. And I think it's probably possible that we will get above the 1.45 level before it's all said and done. That might be a Friday trade actually, as we get the non-farm payroll announcement simultaneously with Canadian employment. Either way, we're in an uptrend. 1.42, I think is massive support.

If you saw my previous video on Friday, I said that 1.4350 was an area where I thought we could see support and we did bounce back above there by the end of the session. I don't think much has changed other than it probably leans even further in direction of the US dollar over the longer term, so I like USD/CAD as a buy on the dip pair. I think this will continue to be the case for some time going forward, especially as the Parliament in Canada won't be able to get back to work.

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