USD/CAD Forecast Today 17/02: Breaks Key Support (Video)

(MENAFN- Daily Forex)

• The US dollar has fallen a bit during the trading session on.
• Friday to break down below the crucial one point four to level against the Canadian dollar.
• This is an area that I think continues to be important, so I'm definitely watching this very closely.

If we can continue from here, it's likely that we may make a run down to the 200 day EMA, which is all the way near the 1.40 level. That being said, it really comes down to one thing and one thing only, and that's whatever Donald Trump says about tariffs. If he throws a tariff on Canada for any reason whatsoever, this will turn around quite drastically.

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Because of this, I am not shorting this USD/CAD pair , although I freely admit I wouldn't buy it here either. What I'm waiting for is what he's going to do and how the market reacts to it. Canada still has a lot of issues outside of any tariff or trade war with the United States. Therefore, I'm not a huge fan of the Canadian dollar itself.

It does look like we have, at least for the time being, found the bottom for the Canadian dollar overall, but the question is, does it become a relief rally for the Loonie or does it become something bigger? Those are two totally different scenarios. With this being said, I like the idea of waiting to see if we get a bounce that looks like it has any momentum whatsoever and, in that environment, I wouldn't hesitate to be a buyer because it goes with the longer term trend, which is something we like anyways. So, at this point in time, it's more or less wait and see. We'll see how the trade talks continue because right now they aren't and that is Canadian dollar negative.

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