USD/CAD Forecast 15/10: Bulls Eye 1.45 After CPI (Video)

(MENAFN- Daily Forex) The US dollar continues to see a lot of noise at the moment, as we are looking at a large interest rate differential. Canada continues to stagnate, while the US economy continues to grow and see inflation.

USD/CAD

The U.S. dollar has rallied a bit during the trading session here on Wednesday as the market tested the 1.43 level. The 1.43 level is an area that a lot of people will be watching very closely. It's been resistance in the last couple of sessions, and of course, we've seen a jump after the CPI numbers came out hotter than anticipated in the United States.

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The market pulling back from here, I think, could see a certain amount of support near the 1.4250 level. We have been consolidating a bit at this juncture, and I do believe that the noise will remain a certain kind of bullish but hesitant is a lot of noise just above here as well

There is a lot of noise just above here as well that extends to basically the 1.45 level. Over the course of the last couple of years, there was an area that was tested, and with interest rates jumping in America, that does make the U.S. dollar a little bit more attractive than the Canadian dollar.

Furthermore, the latest jobs number coming out of Canada was absolutely miserable, and with the rising rates in America and the trade war going on between the United States and Canada, it all combines for a stronger U.S. dollar.

EURUSD Chart by TradingView

If we were to break down from here, I'll be looking to buy this market closer to the 1.41 level. To the upside, I anticipate that we try to get to 1.45, but it's going to take some serious time. The interest rate differential pays you at the end of every day.

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