The USD/CAD pair had a pretty wild session on Friday as we went back and forth in a very wide range. However, what I am paying attention to at the moment is the 1.10 level, as I believe it is essentially a floor in this market. After all, the breakout above that level was significant, and it should lead to continued upside pressure every time the market tests it. With that in mind, I still believe in buying pullbacks in this market when we see signs of support, something that I think will happen time and time again. Ultimately, I am still aiming for the 1.15 level in this market, and think that given enough time, we should get there.
There are a lot of moving parts when it comes to the USD/CAD pair, which of course has two very interwoven economies. It is a necessarily that the Americans depend on the Canadians, binds the Canadians most certainly depend on the Americans as the US buys 85% of Canada’s exports. With that, strength in the US normally means strength in Canada sooner or later, and this week will have a very interesting dynamic to it as both countries release employment numbers on Friday.
Continued uptrend.
I still believe that this market is in an uptrend, and should continue to be so for some time. After all, there really hasn’t been anything to suggest anything different, and even with the wild action on Friday, we are still well above major support zones. With that, it’s almost impossible to short this market, at least until we get to the 1.15 level. Up there, things get interesting because the 1.15 level is the beginning of a massive resistance level that is easily seen on the monthly charts.
Will continue to bite dips in this market as they come, aiming for short-term gains. On Friday, there is the possibility that we get some type of imbalance between the two jobs market, which could provide a lot more clarity. With that, I suspect that the real action will come on Friday.
