USD/CAD Forecast Today 21/05: Choppy At 1.3750 (Video&Chart)

(MENAFN- Daily Forex)

The US dollar has found itself a little bit choppy during the trading session here on Wednesday as traders are just simply trying to sort out where to go next. Ultimately, I think this is a market that will remain noisy right around this area because quite frankly, the 1.3750 level is an area that has been historically important for some time, and I just don't see how that changes anytime soon.

Keep in mind that interest rates rising and falling will have an outsized influence on the USD/CAD market and with the US interest rates initially shooting higher and then dropping during the day this has most certainly played out in the US dollar against the Canadian dollar market Between the EMAs

All things being equal, this is an area that previously has been important, and we are trading between the 50-day EMA and the 200-day EMA indicators, something that typically causes some type of squeeze eventually.

So, with this I'm watching very closely if we can break above the 200-day EMA I'm very bullish to this pair if we break down below the 50-day EMA then I think we could drop to the 1.36 level.

Top Regulated Brokers1 Get Started 74% of retail CFD accounts lose money

Keep an eye on that 10-year yield in America. It got really outsized to the upside earlier in the session, but I think we are starting to see the market try to push back against that maybe the fear is starting to subside a little bit we'll just have to watch.

It's a fluid situation, it's a dangerous situation, size your trades accordingly.

EURUSD Chart by TradingView

Ready to trade our USD/CAD daily analysis and forecasts? Here's a list of the best Forex Trading platform in Canada to choose from.

MENAFN21052026000131011023ID1111148438