(MENAFN- Daily Forex)

• The US dollar has initially pulled back just a bit against the Canadian dollar during the trading session on Thursday only to turn around and show signs of life again.
• Ultimately, this is a market that I do think goes much higher in short term pullbacks offer buying opportunities as a Canadian economy in and of itself is a bit of mess.
• As things stand right now, I think we are trying to get to this major supply area, which is at the 1.4250 level.

I don't know how long it takes to get there, but we have broken out of a couple of little consolidation areas, and now we have formed a massive, rounded bottom. Ultimately, I do think that we will go much higher over the longer term and go looking to the 1.4250 level and in the meantime, I think it's going to be a grind that's typical of this pair, but you get paid to hang on to it.

50 Day EMA and Technical Analysis

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So, keep that in mind the 50-day EMA has just broken above the 200-day EMA kicking off the so-called golden cross Which is a longer-term buy and hold signal. I don't have any interest whatsoever in shorting this market. I think you've got a scenario where everything's leaning in one direction. And of course, the Canadian economy is a mess while the US dollar has been fighting quite nicely against other currencies, not just the Canadian dollar.

EURUSD Chart by TradingView

In fact, when you look across the forex world, the Canadian dollar looks absolutely miserable. So, I don't see that it starts beating up on the US dollar without some type of major flip in attitude. I'm a buyer of dips. I'm writing it up to 1.4250 at the very least.

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