The USD/CAD pair initially fell during the session on Monday, but found buyers below in order to turn things back around and form a rather positive candle. Because of that, the market looks as if it’s heading into the 1.1650 resistance barrier, and could very well break out above there. With that, it’s probably only a matter of time before pullbacks could collect more buyers, or a move above the aforementioned barrier collect more buyers. Regardless, I have absolutely no interest whatsoever in selling this market as it is essentially the same thing as ignoring the fact that the US dollar is the strongest currency in the world right now.
On top of that, the oil markets look very soft, so they won’t be giving the Canadian dollar any real lift. I think that anytime that this market falls, you have to think of it as the US dollar “going on sale.” I also recognize that the 1.15 level below should be massively supportive, and therefore think the buyers will step in and pick this market up somewhere in that general vicinity.
Bullish uptrend should continue of the longer-term
Looking at the longer-term charts, I see plenty of support for the uptrend that we are currently in. I believe that it’s only a matter of time before reach the 1.18 level, which is my target. Pullbacks should continue to offer plenty of buying opportunities, and I believe that there is a massive amount of support just below the 1.15 handle as well. It’s difficult to imagine a scenario in which I would go against the US dollar, especially against the Canadian dollar as it is a heavily influenced commodity-based currencies.
Ultimately, I think that we go above the 1.18 handle and towards the 1.20 level given enough time. That’s next year obviously, as we are heading into a very low liquidity type environment. Nonetheless, I’m looking for pullbacks on short-term charts as potential buying opportunities to add small positions on top of my reasonable amount of bullish positions currently. Selling isn’t even an option.
